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Understanding Off Shoring Benefits

Offshoring refers to relocating a company's business operations from one country to another, typically to take advantage of lower labor costs or more favorable economic conditions. Some key reasons for offshoring include reducing costs through lower wages and operational expenses abroad, gaining access to new foreign markets, and tapping into a wider base of knowledge. While offshoring can result in cost savings, real estate cost reductions, and tax benefits, it also presents challenges like communication issues due to distance, cultural and social barriers between countries, difficulties from time zone differences, and security concerns.

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Deepak Rao Rao
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101 views6 pages

Understanding Off Shoring Benefits

Offshoring refers to relocating a company's business operations from one country to another, typically to take advantage of lower labor costs or more favorable economic conditions. Some key reasons for offshoring include reducing costs through lower wages and operational expenses abroad, gaining access to new foreign markets, and tapping into a wider base of knowledge. While offshoring can result in cost savings, real estate cost reductions, and tax benefits, it also presents challenges like communication issues due to distance, cultural and social barriers between countries, difficulties from time zone differences, and security concerns.

Uploaded by

Deepak Rao Rao
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

OFF SHORING

PRESENTED BY
JINU M V
OFF SHORING
 Off shoring means moving or relocation of one or more
business operations from one country to another.

 In another words the moving of operations of a company


to another country for reasons such as lower labor costs or
more favorable economic conditions in that other country.
Reasons for off shoring
 Lower labour and operational cost

 New markets

 Wider knowledge base


Pros of off shoring
 Cost saving
 Real estate cost lowering
 Managing risk
 Tax advantage
Cons of off shoring
 Communication issues
 Cultural and social barriers
 Time zone differences
 Security

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