What is offshoring the practice of basing some of a

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The project was terminated in 2013. What is offshoring The practice of basing some of a company's processes or services overseas, so as to take advantage of lower costs Examples – Ford Motor Company is a renowned American automobile giant. FMC outsources software development, IT & customer support to India. Cisco - The famous networking giant company invested over $150 million in structuring and expanding its technology development enterprise in India. Cisco also set up its 2nd largest research and development facility in Bangalore, India, which houses more than 1500 Indian technical professional American Express (American Multinational Financial Corporation) is one of the pioneers of back-office operations & decided to offshoring to India. American Express opened its Financial Center East in New Delhi in 1994. American Express also practices business process outsourcing when it comes to customer service duties. General Electric decided to focus on India & invested about $130 million in setting up a big, state-of-the-art research and development center in Bangalore, India. This center is the General Electronics’2nd largest research and development center in the world and is staffed with skilled Indian professionals. Many IT companies and manufacturing companies offshore to India and have plants or facilities here, due to cheaper labour cost and other overhead costs. Reasons why India has become the ultimate offshoring destination for big companies 1. India has the largest professional and technical talent pool in the world and an immensely talented workforce 2. India offers flexible pricing options for services 3. India provides consistent premium quality services 4. India boasts of the best in technological Infrastructure and capabilities 5. The Indian Government is very stable and offers attractive IT strategies
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6. Indian companies provide the quickest turnaround time (time-to-market) 7. Unique time zone advantage making it easy to provide 24/7 services (Indian time zone is 5.5hours ahead of GTM and 10.5 hours ahead of the EST) Advantages of offshoring 1. Cost savings 2. Opportunity to acquire specialized skill and equipment 3. Economies of Scale - When a company sets up office or a factory abroad, it is not just capitalizing on comparative cost advantages on labor but also on existing economies of scale 4. Close Collaboration Offshoring gives the company greater control through closer physical collaboration. Shared space collaboration has the advantage of overseeing the conduct of work without the filters or delays associated with technology.
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