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What is offshore IT outsourcing?

A Lot of business owners are confused when it comes to offshore outsourcing. We at SFV Impex would like to bring some clarity to the offshore outsourcing contracting and why so many companies utilized offshore outsourcing today.

What exactly is IT offshore outsourcing? Offshore outsourcing involves contracting out a function of your business, In this case IT to another party. Many companies prefer to work with third parties which are abroad. In this case, Your IT expert will be based in India.

4 types of IT offshore outsourcing.

  • KPO – Knowledge Process Outsourcing.
  • BPO – Business Process Outsourcing.
  • ITO – Information Process Outsourcing.
  • Software R&D – offshore software development.

Factors that lead to the growing trend of offshore outsourcing.

  • Lack of technical expertise or IT skills needed for your business process in the local labor market.
  • Access to cheaper labor while not affecting quality.
  • The ability to concentrate on other critical business processes.
Today about 65% of American companies enjoy the benefits of technology outsourcing their IT projects rather than having their own IT specialist in house.

Key statistics on outsourcing.

  • Almost 54% of all companies use third party support teams to connect with customers.
  • Globally, businesses spent $75.2 billion on outsourcing security last year.
  • 78% of businesses all over the world feel positive with their outsourcing partners.
  • The most commonly outsourced jobs in small business are accounting and IT.
  • 71% of financial service executives outsource or offshore some of their services.