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A to Z of Offshoring / OffSourcing....

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ttractive Big Budget Cuts, Costs Diving Down !

Benefit From Gray Arrow A Kaytek Offshoring Consulting Insight

The single biggest benefit of Offshore Outsourcing is the Attractive Cost Savings that are easily possible.

Organizations have discovered that their Costs after Offshoring reduce by as much as 50 % without much of a problem.

This enables them to utilize their Budgets much effectively and stretch the same to the maximum.

At a time when most developed economies are in recession or are showing negligible GDP growth, offshoring via attractive IT budget cuts can help save valuable dollars in a downturn.

Cost savings are possible not only in IT Capex (Capital Expenditure) but also in Opex (Operating Expenditure).

In addition, the offshoring option enables one to adopt a Zero Based Budgeting philosopy that looks at all existing costs with a fresh perspective.

The Return on Investment (ROI) of an Offshoring Exercise is not very difficult to establish.

In addition to a ROI calculation, one should also attempt to do a RTI - Return To Individual Calculation for those people in the organization whose work activities will be impacted by offshoring.

Also, currency fluctuations between different currencies where offshoring is being done are crucial for offshoring economics.

Risk Mitigation strategies for minimizing currency fluctuations are essential to monitor and maximize operational profitability due to offshoring.

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Last Updated on 23rd March 2009
Posted on 22nd April 2004

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