Offshoring & Outsourcing — why does it happen and is it worth it?

Do you have a company that needs to outsource part of its busy work to another company to save time? It is hard hiring staff to do odds and ends, or busy work in America. Costs are high, people are lazy, and then you have to deal with payroll taxes, unemployment taxes, EDD, and more! What a pain!

The government doesn’t get it.
If they really want to stop all of the offshoring that is going on, instead of having RULES that stifle offshoring, they need to have incentives for INSHORING (if that is a word). All of these taxes, payroll rules, and minimum wages create high unemployment and make it risky to hire anyone. Labor laws make it difficult to fire someone without risking being sued for wrongful termination as well. If you combine all of these factors with the laziness and disrespect which is part of the modern American culture — a logical person will draw only one conclusion: Take it overseas — and fast!

In foreign countries, people ACTUALLY want to work.
I know this might sound hard to believe, but it is true, and I am an eye witness. People overseas might not have the work skills or communication skills that you want, but you can get lots of work done really cheap if you know who to go to and how to handle them.

Offshoring takes skill
Many Americans are afraid to outsource because they are afraid of what people in foreign countries will do with their work. This is a legitimate fear. There is an abundance of sloppy and unprofessional behavior. It can get so unprofessional that you will say, “What is wrong with these people?” frequently. However, if you find the right people who really want to work (sort through them), you will find that you can get work done at 20% of the cost, and often much faster than you could get it done here. In addition to needing skills picking a company, you need to know how to HANDLE them. I have taken many rick shaw rides in India, and you have to know all of their tricks and how to manipulate them instead of letting them screw you. Either you have to be a player, or you will get played. Overseas companies can be very unresponsive and uncooperative, not to mention sloppy. You need to know when to bribe them, when to threaten them, and when to pack up and leave them. It is a lot like how dating is if you live in a low income neighborhood. It is a jungle out there, so if you want to thrive, you need to know how to play the game.

Don’t fear foreigners — You can get screwed right here on domestic soil
The typical white American feels so comfortable with other white Americans and so uncomfortable when in a foreign environment. Your feelings have very little to do with reality. Sure, if your senses tell you that an individual is trouble, you very well might be right, but outsourcing is not something to fear — it is something to master. I have dealt with many American companies. Although they are more professional on the surface, they are notorious for not returning calls, not returning emails, keeping you waiting indefinately, and even outright cheating clients out of thousands. Remember: when you get screwed in India you get screwed out of Rupees (2 pennies per rupee). When you get screwed in America by middle class white Americans and you can lose thousands. The scale of proportion is very different and you can lose big right at home. People here cheat all the time. My personal experience is that you will get screwed twice as much in India as you will here, but the one time you get screwed here will be of a monetary value of 10x what you got taken for in India.

Basically, I recommend trying to do some outsourcing and offshoring. Start on a small scale and try some companies out until you find someone you like. If later on, they are too busy or become uncooperative, you can try some others out. In the long run, if you learn how to play the game, you will increase your profit margin in ways that you might previously have thought were unimaginable.

You might also like:

An emotional experience with a Russian outsourcing company
http://bpo.123outsource.net/2013/10/18/an-emotional-experience-with-a-russian-software-outsourcing-company/

Are you dealing with a broker or an owner?
http://bpo.123outsource.net/2013/09/16/are-you-dealing-with-a-broker-or-an-owner/

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