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5 Reasons to choose Offshore Outsourcing

Finding the right resources for your IT business is a challenging task. Adding to that is the cost and time spent on hiring, training, and managing resources with overheads like infrastructure and insurance costs. This is why many businesses turn to outsourcing as a viable option for fulfilling their staffing needs. Among the different outsourcing models available, offshore outsourcing is widely accepted as one of the most beneficial for IT companies. Offshore staffing means employing resources, from an IT service provider, in countries with lower labor costs without compromising on technical expertise. With cloud technology becoming the norm and companies looking to cut costs in the wake of the Covid-19 pandemic, offshore staffing can be the right option for enterprises.

In this blog, we will discuss the major reasons why companies should choose offshore outsourcing.

Why Offshore Staffing

To thrive in a dynamic market like IT, companies are focused on staying competitive. Offshore staffing provides many benefits for maintaining the edge over the competition while staying cost-effective and efficient.

1.    Cost of Labor

Experienced and expert resources come at a high cost. This is further increased due to high cost of living in US cities. Locations like India offer skilled talent at a fraction of the cost. For example, according to, the average salary for a mid-level web developer in USA is around $75,000 – $90,000 per year. Whereas in India the same resource would cost about $25,000 – $30,000 annually. In addition, when companies outsource offshore to IT service providers, they don’t have to worry about expenses like hiring costs, insurance, and office overheads. Cost reduction is one of the leading reasons for businesses to outsource, as per Deloitte Global Outsourcing Survey 2020.

Image 1- Outsourcing Objectives

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2.    Profit Margins

It is obvious that the cost of labor is significantly lower in countries like India, as compared to the US. Furthermore, the cost of doing business is also much lower. This includes medical insurance, legal fees, and infrastructure costs. Well-established IT staffing companies have state-of-the-art offices which reduces additional expenditure on setting up infrastructure offshore. IT staffing agencies help companies maximize these benefits by providing hired resources at their offshore locations. As a result of lower costs, companies can increase their profit margins with offshore staffing.

3.    Skilled Resources

More than 85 million jobs could be unfilled by 2030 due to lack of skilled resources, as per a report by Korn Ferry. In the US, the number of technology jobs exceeds the availability of expert individuals. This further drives up the cost of hiring as scarce talent demands higher pay. By outsourcing to professionals offshore, businesses can gain experienced and expert individuals who are fit for the job. India alone produces more than one million engineers every year, with a majority of them being IT professionals. This pool of educated individuals is ready to be tapped in. These well-educated individuals are not only experts in their field of technology, but are also well-verse in English, which makes communication easy.

4.    Extended Operations

Offshore resources are usually placed in countries with a significant time difference. This offers companies the opportunity to have round-the-clock operations. 24×7 working helps in faster turnaround times and better customer experience as communication is possible any time. The overlapping working hours enable businesses to cater to clients from across the globe.

5.    Scalability

Flexible offshore staffing models allow businesses to scale as per their requirement. This provides a low-risk alternative to hiring and firing resources in-house. Companies can cater to surge in demand with offshore resources while keeping costs low and productivity high. Offshore talent can be used to fill gaps in the existing skill set. This way enterprises can focus on their core strengths while outsourcing specific jobs offshore as the need arises.


Companies are constantly looking for ways to boost their productivity, be flexible and agile, and leverage the latest technologies to improve their time to market and quality. To achieve these goals offshore staffing is the right option for businesses to stay productive and competitive. With digital technologies becoming the mainstay of business, remote and offshore working have become much easier and an acceptable way of working. At NAVA Software Solutions, we are a trusted partner of many prominent IT firms and provide high-quality offshore resources from our own offices in India. Our cost-effective and technically skilled resources are available for the duration you need. Contact us today for your offshore staffing requirements.


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