As your business prospers and evolves over time, it is essential to start looking at new ways to save money. You may reach a point as a business owner where you realize that you should pass along some of your processes to other specialists who can perform the same duties with greater profitability. Offshoring allows your business to increase productivity and reduce costs while increasing profits.
Offshoring gives businesses the competitive edge. It allows them to push the envelope in terms of cost efficiencies and production. There are several ways that offshoring can help you save money. Here are a few of the benefits you can expect for your domestic business:
The average cost for U.S. firms to hire U.S workers is $4,000 per employee. When you use offshoring, you are not hiring new employees, but instead are paying laborers as contractors. There are many costs associated with hiring a new employee. The salary is one obvious cost, but there are also several more to consider, such as life insurance, disability coverage, tuition reimbursements, and gym memberships. With offshoring, you can eliminate those extra costs.
Many business owners wonder if there is a significant cost advantage between hiring an employee and offshoring. With offshoring, your company will pay less for any labor-intensive processes. Generally, labor wages in Mexico are some of the most affordable in the world. Labor wages for skilled trades in Mexico are typically only 20% to 30% of the salaries paid in the United States and Europe.
With offshoring, your business has access to some of the best candidates who have extensive knowledge and training in how to run a factory. The Mexican government has recently made extra efforts to improve interest in manufacturing. They created several education and training programs that generated a strong and cultivated labor force. Therefore, when investing in offshoring, you don’t have to have concerns about the quality of your company’s products even while paying a lower price to manufacture them.
Offshoring can help with business growth since you are paying less for labor processes. You can take the money you saved and reinvest it into other areas. Due to the lower labor costs, more business owners can free up their labor funds to be reinvested in their company. They can choose to expand their services or branch out into a new development for the brand. Many companies that depend on offshoring their business base their decision on globalization and free trade.
When you use offshoring for your business, you have the opportunity to work with specialized labor groups that can complete your production tasks at a more efficient rate. These labor force groups are capable of working around the clock, resulting in faster turnaround times for your business.
To learn more about how offshoring can help your business save money, contact the experts at Colby BPO by calling 1-800-401-8227. Our licensed professionals will be happy to answer any questions you have.