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Benefits of offshore outsourcing

In recent years, many Asian countries have become destinations for offshore IT outsourcing services. Simply put, it's much more affordable to pay employees in Asian countries than to pay employees in Europe or the United States. Offshore IT outsourcing allows businesses to operate fully at lower labor costs. This is especially important for labor-intensive businesses such as manufacturing and services where reducing labor costs helps reduce operating costs, increase revenue, and maximize revenue.

Benefits of offshore outsourcing

 2022-03-17

Benefits of offshore outsourcing

1. Cost Reduction


Labor costs

In recent years, many Asian countries have become destinations for offshore IT outsourcing services. Simply put, it's much more affordable to pay employees in Asian countries than in Europe or the United States. Offshore IT outsourcing allows businesses to operate fully at lower labor costs. This is especially important for labor-intensive businesses such as manufacturing and services where reducing labor costs helps reduce operating costs, increase revenue, and maximize revenue.

 

Tax costs and financial incentives

Companies can also save on tax, social security benefits, health insurance, workers' compensation, and other employee-related cost savings. In developing countries such as the Philippines and India, the costs of utilities, infrastructure, and materials are also reasonable, making them cost-effective for labor-intensive industries such as manufacturing.

 

Operational and infrastructure costs

If you decide to take IT outsourcing offshore, you don't have to invest in infrastructure and technology makes up the majority of your capital investment. Instead, that money can be used to develop other core areas of the business.

 

Training costs

When forming a team of in-house developers, there is inevitably a charge for staff and additional technical training for R & D, which also is significantly reduced by Offshore IT outsourcing.

 

 

2. Access to talented people in the world


The advantage of offshore IT outsourcing is that the company has access to talented, qualified, and experienced personnel. Human capital is the lifeline of any corporate project, business operation, and system. Especially in outsourcing, the capabilities and potential of software engineers are more of a concern than ever before. By choosing a good offshore IT outsourcing team, your project will be handled by a team of skilled professionals.

 

 

Countries such as China, Vietnam, and India have a large number of highly specialized developers. In particular, Vietnam's information technology workforce in recent years has always been highly evaluated, including the top 10 countries with the most engineer graduates, the top 7 countries in Asia with the highest EF EPI average, and the top 5 countries in Asia with the fastest EF EPI averages, top 10 Asia-Pacific countries with the highest human capital index and improved English proficiency.

 

Meanwhile, Hachinet Software will provide a wide range of software developers to Vietnamese outsourcing companies over the next few years, so both the quantity and quality of IT education in Vietnam are growing rapidly. Vietnamese students are often evaluated for their ability to acquire knowledge quickly, most of them with standardized exams, employer support, reputation, etc., and an excellent academic background accredited by global awards. Specifically, among all Southeast Asian countries, Vietnamese students have the second-highest academic ability in all subjects, second only to Singapore.

 

24 hours/day, 7 days/week

The advantage of offshore IT outsourcing is that it can be operated 24 hours per day, 7 days per week. Offshore IT outsourcing to Asian countries like Vietnam in different time zones offers enterprises the added benefit of maximizing 24 hours a day. Since your night is their day, your partner can take over and continue working after your employees go home and go to bed. They can complete important tasks and send them back for next-day review. So the advantage of outsourcing here is that you can do more in a day and improve your overall productivity. 24/7 customer support is fruition for our customers, which can be fully achieved through offshore IT outsourcing.

 

Quick delivery

Working with a team of talented professionals makes the process smooth and fast. This means that services will be delivered faster and more efficiently. These are important competitive advantages for any company.

 

Adaptability

Outsourcing companies appoint production teams according to their business requirements. Their large workforce and production control teams allow them to adapt to small, medium, and large tasks. In addition, offshore IT outsourcing allows enterprises to quickly respond to and adapt to rising or slowing demand and changing markets.

 

Risk reduction

One of the benefits of offshore IT outsourcing that determines the outcome of a project is risk analysis. Outsourcing specific components of a business process help organizations transfer specific responsibilities to outsourcing companies. There are many factors that a company may not be aware of that it can easily recognize and fix. Identifying and preventing all possible risks is essential to success.

 

 

3. Conclusion


Vietnam's IT talent is increasingly valued for its ability to self-study, explore and integrate with foreign companies. However, it is no exaggeration to say that domestic technology can be compared with the countries of the region. The issue of human resources is not fully utilized in terms of scope and power to ensure quantity and quality.

It is also the reason for seeing the great powers fighting each other, primarily for technology, not trade. Therefore, technology is a way to help Vietnam give up ruts to catch distant waves. Vietnam's dream of becoming an IT country will come true someday. 

 

 

If you are considering offshore development, please feel free to contact us.

Here is our contact information.

Account Manager: Quan (Japanese/English available)

Phone number: (+84) 2462 900 388

Email: contact@hachinet.com

Please feel free to contact us for consultation/application by phone.

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