Offshoring's Positive Impact on the Bottom Line

Ann All

Though experts caution companies not to make offshoring all about saving money, it appears that cost reduction remains a very big motivator for most folks.

Hard to argue the point, based on research from the Software & Information Industry Association. Three-quarters of companies surveyed by SIAA report that offshoring has positively impacted their revenues. And a whopping 88 percent say offshoring has had a positive impact on profits.

These kinds of strong numbers are an obvious driver for the continued strong growth in offshoring.

Lower costs go a long way toward tipping the scales in favor of offshore providers, according to a DiamondCluster International study released in July. That study showed that more companies (42 percent) had canceled onshore outsourcing contracts in the previous 12 months vs. offshore cancellations (28 percent).

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