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Advantages of Labor Off-shoring

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The relocation of a company’s business process, especially operational processes such as manufacturing, from one country to another is normally so as to lower operational costs in the new location. Production off-shoring involves relocation of physical manufacturing processes to a lower cost destination. When conducting off-shoring business, a company prefers locating its operating base in destinations where there is availability of cheap, skilled labor. Since the average salary for an offshore employee compared to that of an onsite employee is lower, a company can save greatly on its costs in terms of wages. Also, there is a reduction in the human resource burden as a company deals only with the representative of the offshore company instead of having to deal with a large number of workers which saves time.

A company is able to save on office space and equipment while at the same time increasing the staff number since the off-shoring company is able to focus more on tasks that have a direct impact to the growth of the company. This ensures that on-site staff works harder and smarter thus attaining higher productivity. A company can easily take advantage of time differences in different parts of the world and thus cater for its customers for twenty-four hours. This boosts the company’s growth. In a traditional recruiting process, there is a lot of work involved, such as interviews and employee training. Conducting off-shore business saves a lot of time for top management who would otherwise spend a lot of time interviewing a lot of prospect to fill a few posts. Jobs keep people busy and thus they have no time to engage in evil activities. Therefore, lesser social evils occur, which makes the world a safer place to live in. In addition,  inflation remains stable thereby creating a noble environment in which the economy can thrive.


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