Why do companies offshore business research?

[Varsha Chitale]

Duh! Isn’t it all about cost?

Perhaps… perhaps not. When one talks about off-shoring, the first thought that pops up is cost arbitrage. Indeed, cost arbitrage between developed countries and most offshore destinations is significant. But this is not the only reason, or in some cases it is not even the most important reason for off-shoring.

Despite a sharp rise in salaries in many off-shoring destinations like India and the Philippines, the average salary of an analyst in the US is over 10 times the salary of an analyst in say India. All of this is not realised in an offshore partnership, as there are several overheads to be considered.

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