The Domestic Alternative to Offshore Outsourcing
Since 2004, the Homeland Onshore Model (HOM) has allowed participating firms to take advantage of highly trained and experienced U.S. labor pools utilizing lower cost jurisdictions that exist throughout the United States, resulting in significant savings. In many cases, the savings are comparable to expected but unrealized expected savings from their current outsourced resources.
With IT budgets continually being negatively impacted, IT executives are under more pressure than ever to cut costs, even as the workload increases. In the past, IT executives turned to offshore companies to bridge the budget gap. Lately however, savvy IT management has come to realize that offshore outsourcing is not the cost saving silver bullet they anticipated. In fact, moving IT jobs offshore has fallen well short of cost saving expectations. Productivity language and time zone issues greatly mitigate, and in some cases completely eliminate any expected cost savings.
On the supply side, our experience indicates that, in many cases, U.S. based resources can be delivered to the client for “out the door” costs that are 25% to 60% less than current employees total cost (salary + burden). Savings are realized by the elimination of all employee overhead as well as significantly reduced rates. Infrastructure and real estate costs are no longer a fixture in your budget.
Since we first deployed HOM in 2004, we have successfully delivered US based knowledge workers to the client for “out the door” costs that are 25% to 60% less than current employees total cost (salary + burden).
HOM Resources Cheaper Than Their Offshore Counterparts?
Recently numerous articles have suggested that a 3:1 offshore productivity deficit is in now common among companies that utilize offshore outsourcing firms. This ratio has been confirmed by many our clients as well.
Now more than ever, it makes sense for companies to explore the cost saving opportunities that exist by bringing back their offshore work and utilizing domestic IT workers in lower cost areas to save money.
In short, firms can still realize the benefits of the Global Delivery Model while significantly reducing hidden costs and mitigating risk. We believe that decision makers in most organizations will realize that as long as the work is being done well, it does not matter where the workers are that do it.
The bottom line is, we’ll help you get your work done at greatly reduced cost and risk.