Global enterprises that seek offshore development as a great business advantage find many benefits:

• Cost Savings:
  Access to lower cost economies through Offshoring, called "labor arbitrage" generated by the wage gap between industrialized and developing nations
  
  
• Improved Quality:
  Achieve a rise in quality through contracting out the service with a new Service Level Agreement.
  
  
• Knowledge:
  Access to intellectual property and wider experience and knowledge
  
  
• Service Level Agreement Contract:
  Services will be provided to a legally binding contract with financial penalties and legal redress. This is not the case with internal services
  
  
• Focus on core expertise:
  Better time management of core areas can effectively improve performance. Leverage of more out of a service provider who is expert at your non-core activities enables better overall performance
  
  
• Operational Expertise:
  Access to operational best practice that would be too difficult or time consuming to develop in-house.
  
  
• Staffing Issues:
  Access to a larger talent pool and a sustainable source of skills.
  
  
• Capacity Management:
  An improved method of capacity management of services and technology where the risk in providing the excess capacity is borne by the supplier.
  
  
• Reduced Time to Market:
  The acceleration of the development or production of a product through the additional capability brought by the supplier.
  
  
• Risk Management: An approach to risk management for some types of risks is to partner with an outsourcer who is better able to provide the mitigation