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Enterprises are coming of age and realizing the importance of domestic outsourcing and how cost effective it can be for them. They are realizing that they can get, if not better but same service by outsourcing services to the domestic provider as compared to offshore outsourcing. If the jobs outsourced to other countries at a lower cost needs to come backshore organizations need to overcome the outsourcing challenges like

1. Reducing operating and IT infrastructure costs. Cost savings has been the primary business rationale for off-shoring across all industry sectors.
2. Faster time-to-market for new products and services
3. Increased focus on core competencies
4. Staff augmentation on an as- needed basis

Based on recent average wage rates for IT professionals, U.S companies have been saving to the tune of 25 to 30% from offshore outsourcing. Since the largest component of IT costs is labor and infrastructure, considerable cost reductions can be achieved by moving these functions to locations where infrastructure is not as expensive and labor can be procured at a lower wage.

The domestic outsourcing or Inshore Approach to IT services organizations with the ability to work with a team of experts tightly integrated with their operations bringing best practices in remote service delivery, resource scalability, and domain expertise at total costs significantly lower than alternate sourcing options.

To benefits the American economy by keeping highly skilled, high-wage technical jobs in US, domestic outsourcing or in-shoring is the new buzzword, Government provides benefits to enterprises:

1. Cost of labor less by upto 25 to 50%.
2. You can implement security measures in place to ensure no security breaks or misuse of intellectual property.
3. No Currency fluctuations
4. No multi-country legal issues to handle
5. Generous incentives from the government

So while many companies are willing to move their business back home, it may be a while before they can see the benefits. But it can also end the employment woes and ensure jobs remain inland rather than move outside the country. Domestic outsourcing or In-shoring could usher in a new and effective way of doing business.

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