Businesses can benefit a lot from off-shoring. But there are several keys things, like quality of work, select talent, time zone overlap, good handshake make this a ideal business case for a client. We at IT Caliber have perfected this, and can help you achieve your business goals for less of a cost.
Below factors drive for off-shoring and we understand them thoroughly.
Select Talent Shortage
For large multinationals, especially technology firms, the war for talent is global. Companies such as Google, Microsoft and IBM have repeatedly lobbied the U.S. government for easing of visa sanctions to allow more foreign workers to expatriate to the U.S. According to the Bureau of Labor Statistics, the unemployment rate for computer and mathematical occupations in 2012 was 3.6% - below the 4% that observers consider "full employment." In the absence of legislative reform, companies will continue to look offshore to source talent (see table 2). According to a recent 2013 Talent Shortage Survey (conducted by Manpower) ~50% of U.S. employers are facing difficulty in filling jobs, with the most challenging areas being skilled trades, engineers and IT staff. A major revamp of America’s education and immigration policies is needed to address the talent gap and, in the absence of any near- to medium-term solutions, reshoring of service jobs on a large scale will be extraordinarily challenging.
Cost Economics
Different dynamics drive repatriation of manufacturing, as compared to services. A fundamental difference is the ratio of labor cost as input. As any student of economics will attest, in manufacturing, investment of capital and automation can replace labor costs to a large extent. Services, however, are different. Typical IT, BPO and call center operations have the majority of their costs tied to labor (~80-90% of total cost).