The 1990s presented a tough time for America as organizations faced a colossal skill gap due to the advent of the tech revolution. That’s when US employers first turned to Indian talent for assistance. Since then, the trend has only gotten more assertive, and today, India ranks among the most sought-after countries for offshore business services, especially in the tech field.
Offshoring to India helps businesses save up on a considerable amount of costs. Moreover, the benefits of offshore staffing to India go much beyond just monetary. India is the most attractive offshoring destination due to its people skills and availability, business environment, digital resonance, and, most importantly, financial competitiveness.
Here’s a list of benefits of Offshoring
1. Worker salaries
One of the most outsourced services in India is Software Development. The hourly wage of a developer in India is about three times lesser than that in the US, even with the same profile and job role. That’s because the cost of living in India is far less than in the US. According to livingcost.org, an American’s cost of living is about 79% more than that of Indians.
2. Employee Benefits
Hiring offshore staffing services helps you save on employee overhead costs such as insurance, payroll taxes, etc.
3. Hiring and Training costs
The first and foremost reason companies hire offshore employees is their skill and expertise. Offshore employees are already trained professionals who can start contributing to your organization from day one onwards. By employing them, you can eliminate the training costs of hiring new employees.
4. Office space
Hiring offshore staffing services helps you save on employee overhead costs such as insurance, payroll taxes, etc.
5. Tax incentives
Usually, governments of popular offshoring destinations like India, Malaysia, and the Philippines, offer tax benefits and financial incentives to attract investment from foreign businesses. For example, the Indian government set up SEZs or Special Economic Zones, designated duty-free regions. Establishments in these specific enclaves enjoy massive tax compensations and other benefits. Learn more
Don’t believe us? After all, numbers don’t lie! Let’s take a closer look at some statistics.
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