At the present stage of development, companies use various tools to develop and improve the efficiency of their business. Among them, the resort to offshoring stands out when an organization attracts labor from outside countries. This work supports the point of view that offshoring, as an example of outsourcing, is a way to improve a company’s productivity through achieving more labor, development in new markets, and control. Companies that are particularly successful in employing workers from other countries are Intel and Microsoft.
Therefore, a successful Intel company is committed to applying outsourcing practices from other countries. Moreover, the manufacturer of computer chips focuses on attracting personnel in countries such as Southeast Asia (Hanson, 2017). Thus, the organization has under its control a tenth of the entire workforce of the country. Microsoft has signed a contract with Infosys Technologies to manage a significant part of its internal IT operations in many countries (“5 biggest US companies that offshore to India”, n.d.). Bangalore and India are among the largest. Thanks to this agreement, the company is given the opportunity to expand its capabilities. In addition, it promotes the spread of Microsoft technologies among a large number of customers.
Offshoring is a way of delegating some of the company’s responsibilities to personnel outside the country of the foundation while exercising control without changing location. This type of outsourcing significantly facilitates the work process of the organization and helps to gain access to a larger workforce. In addition, this tool helps to attract the most significant number of talented staff, which will also increase the efficiency of the company. Moreover, the extensive availability of skills due to offshoring helps businesses meet specific requirements and achieve their goals.
Another argument that can be used as support for the practice of offshoring is the fact of business growth. This tool allows managers to reduce labor costs. Exemption from this cost item will contribute to investing the company’s money in weaker aspects of its functioning. In addition, it is also worth noting the greater availability of attracting employees from foreign countries. The presence of employees from different time zone makes it possible to provide customer support at any time constantly. This leads to a higher level of service due to faster contact.
The next advantage of offshoring as a type of outsourcing is the availability of personnel in different countries, which helps significantly reduce the risk factor for the company. This is due to increased marketing opportunities. The last factor worth mentioning is ensuring control over the functioning of the business. Hence, the organization allows you to have a dedicated staff who, with proper treatment and training, will increase productivity and improve business performance.
Thus, this work considered offshoring as a way to develop, establish competitiveness and strengthen the business. Currently, this method has become a reliable and profitable strategy for business. Hence, this point of view is supported by the fact that it is advantageous for organizations to pay staff abroad, where wages are at a lower level. In this way, the organization can save on lower taxes, insurance, and workers’ compensation. Further, the business gets the opportunity to free up some items of expenses and direct attention to weaker aspects of the activity. Another reason is to give the company control over services and products. Thus, there is a reduction in the risk of risky situations since all processes related to the provision of resources and services occur within one company.
References
Hanson, G. H. (2017). What do we really know about offshoring? industries and countries in global production sharing. Centro Studi Luca d’Agliano Development Studies Working Paper, (416). Web.
5 biggest US companies that offshore to India. (n.d.). 31West. Web.