According to the article, this New England based firm can outsource paperwork to India for 50% of the cost of US workers even after paying the “middle man”… a Florida firm.
From Start Up Journal
Two years ago, executives at Subrogation Partners LLC of Connecticut outsourced some paperwork-processing tasks to India. That is hardly unusual. But Subrogation’s size is: It has about 90 employees.
Tapping cheaper labor overseas isn’t just for large companies anymore. The spread of low-cost technology makes it easier for smaller companies to take advantage of the savings and flexibility, especially in places where big companies have laid the groundwork with labor practices and infrastructure.
Job loss always boosts the home business/business opportunity market. Sadly, that means many scams will be sold.
Milan on January 11th, 2007 at 9:14 am
This also means that companies in India are getting better and better isn’t it.
Chuck on January 11th, 2007 at 9:17 am
Actually it only technically means that the cost barriesr and other obstacles for smaller US firms to outsource have been reduced. It doesn’t automatically imply that the quality of work produced in India has either increased or decreased though it might have presumably remained steady or increased.
Niraj Visnoi on February 15th, 2007 at 10:16 am
Quality provided by Indian companies is at par and sometimes even exceeds the requirements of the clients,Use of various quality proceses and use of change management Etc and other tools along with the pressure to retain the business especially from developed nations has resulted in most of the Indian companies now days being quality conscious. How to implement a quality plan when the teams are distributed between onsite ,clientsite, offsite, front office, backoffice especially used to be a problem but Indian companies seems to have managed it exceedingly well in comparison to other countries providing outsourcing/offshoring services and that is one of the reasons why India is so successful when it comes to outsourcing.
No doubt Small western companies are also using these services to their advantage and keeping focus on what they do best.