Offshoring services has been a favorite and cost-effective exercise for many global companies based in the
“It’s more about knowledge transfer, adding value and time management, says Bharani Aroll, VP, service delivery, Butler International, a tech-outsourcing and engineering services company based in Ft. Lauderdale, Fla. Bharani explains that a company intending to move an internal organizational process offshore needs to have a foolproof transition management capability, a service Butler International, with its strategic offshore location in Hyderabad, India, offers to multi-billion dollar U.S. corporations.
In fact, one global consumer personal care products company reduced its manpower costs associated with quality assurance more than 60 percent as a result of moving this process offshore to
Companies that have both onsite and offshore operational capabilities also play a role in knowledge transfer, which can be critical in taking any organizational process offshore without encountering interruptions in service or delays in production. For example, a large Midwest heavy construction equipment manufacturer, which is in the process of modernizing its fleet of vehicles in compliance with Tier 4 U.S. emission standards, was able to reduce the cost by about 20 percent from an estimated $43 per hour to $36 per hour by engaging offshore delivery services. Using the onsite-offshore model, companies that offshore non-core operations are also able to capitalize on time zone differences where project work begun in the home country is handed off at the end of the workday to teams in the offshore location so that the effort becomes continuous. The heavy equipment maker, for example, managed a 40 percent reduction in the project turnaround time.
Not surprisingly, leveraging time zone differences where the work never ceases is a major reason for companies to offload non-core competencies to places like
In Adapted from Think
Adapted from Think