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Offshore IT Outsourcing: From Cost Cutting to Growth

Author: Innotech Vietnam Coporation
Date: 09/06/2020

In the past few years, Offshore IT outsourcing has become a trend for software development companies in the world. In addition to cost-cutting, it also offers businesses many other benefits.


1. Cost-cutting


When the cost of IT developers in the domestic market is too high or there is no necessary resource, offshore outsourcing is the best solution to such kind of problem. According to reports, offshore outsourcing helps reduce costs by up to 30%. From training costs to infrastructure investments, businesses will cut large amounts of their budgets.

  • Labor costs: Nowaday, many Asian countries are becoming attractive countries around the world for cheap and quality IT developers such as Vietnam, India and China. With offshore IT outsourcing, businesses can create products with lower labor costs. From there, it is possible to reduce operating costs, increase sales and maximize profits.
  • Tax costs and financial incentives: Businesses can also save budget from lower costs on taxes, social security, health insurance, workers’ compensation and other costs related to the staff.
  • Operating costs and infrastructure: If you decide to offshore IT outsourcing, you do not need to invest in infrastructure and technology that takes a chunk of the capital expenditure. Instead, that money can be spent in developing other core areas of your business.


Offshore IT outsourcing your company do not need to invest in facilities anymore Offshore IT outsourcing helps your company do not need to invest in facilities anymore


  • Training costs: If you set up an in-house developers group, you will lose a fee for additional technical training for staff, research and development. With offshore IT outsourcing, this cost has also been cut down.




2. Stress-free


Efficiently managing an entire in-house development team can be very stressful, it can be even more when you have to manage a team that is working on the other side of the world. Fortunately, most offshore IT outsourcing companies provide a project manager to guide the entire project with its members. This helps reduce a large amount of work, which means it will also reduce stress.

Besides, you will not be directly responsible for the employees at the offshore IT outsourcing company you are hiring. If you are not satisfied with those who are working on your project, you can easily get a quick replacement without affecting working performance.


3. Focused Strategy


With Offshore IT Outsourcing you will have more time to focus on your business development and expansion With Offshore IT Outsourcing, you will have more time to focus on your business development and expansion


When you lead an internal development team, you will spend your time managing to create quality products instead of focusing on other business goals of the business. Therefore, when you offshore IT outsourcing, you will spend less time managing the project. And that means you will have more time to focus on your business development and expansion.


4. Released on-time


The advantage of offshore IT outsourcing is its ability to operate 24/7. Offshore IT outsourcing to a country in the other half of the world gives businesses an additional advantage in leveraging up to 24 hours a day. Your partner can take over and continue the work even after your employees come home and go to bed. They can complete the important tasks and return them to your review the next day. So the benefit of outsourcing here is that you get more done in a day, increasing your overall productivity. Reducing production cycles and providing faster and more efficient service are the most important competitive advantages for any technology company.


5. Shared risks


Offshore IT outsourcing companies can have good risk management plans for your company Offshore IT outsourcing companies can have good risk management plans for your company


One of the most important factors determining the outcome of a project is risk management. Outsourcing some of the manufacturing process’s operations helps businesses shift certain responsibilities to outsourcing companies. Offshore IT outsourcing companies often can react and adapt faster to increased or slowing demand and changes in the market. In particular, they are an expert, they can plan for risk reduction factors better. And, it is possible to identify and prevent them to achieve better business efficiency.


Through the benefits mentioned above, offshore IT outsourcing is an attractive solution for many companies. It can help businesses increase productivity and business performance more successfully, better prepare for market challenges with streamlined resources.




Innotech Vietnam always strives to meet the needs of customers with the highest quality products and services. We have experienced working with demanding customers in Japan, the USA, and Australia. We are completely proud of the solution we bring to clients.

If you are looking for an Offshore Software Development company to provide solutions for your company. Contact experts at Innotech Vietnam for any questions about Offshore IT Outsourcing!

Email: [email protected]

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