The hidden costs in off shore outsourcing

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The long and short of the outsourcing business is that it is here to stay and all that the IT shops have got to do is to know how to cut their operational costs further to make the business even more profitable.

Granted, there are many hidden costs that, if not looked into carefully, could eat into small businesses’ profits by a big margin, so it must be looked into at all costs. Once a business is able to get such challenges under control, it will realize just how profitable outsourcing can be, no matter what the big corporations that are always so anti offshore-hiring and outsourcing say.

The cost of training for offshore jobs is what most small businesses find very hard. This is because in the countries that they outsource labor from, the workers they find are bound to be trained on a different system entirely and therefore they have to be upgraded.  Training in IT can be especially costly because sometimes it demands that the hiring company outsource software and hardware for its offshore sources.

When you consider going into outsourcing, also look at the taxes and duties that you are going to be required to pay, both in your country and the country that you are going to outsource from. Consider also the online banking charges which can at times be high.

Take care of traveling costs as much as you can, because in IT you simply have to go out and establish strong working relationships with your off shore work sources. This could sometimes involve flying overseas at very high cost.

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