Benefits of off shoring

The most obvious benefit of offshoring is the low cost. Compared to a U.S. call center, offshoring can save companies up to 50% in operational expenses. But there is more to why people are shipping call centers to countries such as India besides cost. Benefits such as an educated, English-speaking labor pool, low employee turnover, and complimentary time zones all make offshoring attractive.
Let's look at India. India is home to the largest educated English-speaking population in the world. Other than language, the geographical location of India lends itself well to a 24x7 operation. The time zone difference between the United States and India is about 12 hours. This means that a job submitted at 6 p.m. Pacific Standard Time (PST) reaches India at 6 a.m. and is completed by 6 a.m. PST the following morning. Another positive feature of India is the country's highly motivated workforce. U.S. call centers often experience low morale and very high turnover, usually 40%-70% annually. Considering the time and costs associated with training new agents, it becomes difficult to maintain quality service at a low cost. Currently, Indian call centers have an average turnover rate of 5%. We expect that this number will go up.
As offshoring grows, the cost of labor in India is also rising. Many of the same phenomena that the United States experienced in the early 2000s during the dot-com explosion are happening now in India. The competition for talent is heating up, and salaries are beginning to skyrocket. Employees are constantly looking to increase their salaries and are switching jobs quickly. Increasing salaries, competition for talent, turnover rate - all of these factors will affect the benefits of offshoring.

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