Outsourcing

Off shoring or Outsourcing is about increasing business efficiency to grow faster. Save 50% on costs, or hire twice as many employees offshore. There's really only one reason to consider hiring a staff member offshore: COST. With Active Media Outsourcing, you can expect to pay less than half of what you would pay for a similarly qualified staff member in the United States. You can either choose to save the remainder of your investment capital, or hire more than twice the staff for the same investment.

The potential for savings of this kind to positively impact your business is huge. If your business is like most, then your biggest single fixed cost is staff. Every other normal business expense probably pales in comparison to your payroll. Anything that allows you to get the same amount of work done with a smaller payroll is a very good thing.

Off shoring for small-and-medium-sized businesses

Saving energy and money may be even better if you are not running a Fortune 500 business. The smaller your business is, the tougher it can be to manage. You need all the same overhead as a big company, typically supported by much smaller revenues.

You need accounting, financial analysis and reporting, accounts receivable and accounts payable management. You need payroll and compliance. You need recruiting, compensation and benefits administration, training, and performance reporting. You need marketing and sales, market research and customer service. You need people to answer the telephone, handle administrative tasks and deal with a mountain of routine communications and paperwork.

In this day and age you need programmers, people to manage databases, computer and network support, help keeping e-mail and websites and servers and other systems you may be running. All this, while you still need to actually deliver your product or services.

For small businesses, you can't possibly afford to hire all of the people you need, and it's an endless war to constantly switch hats, make do and cut corners just to stay alive.

As your business gets larger, staffing needs proliferate like toadstools, and there is constant pressure from all sides to bring on more people than you can really afford.

People — hiring them, managing them, figuring out whether you are winning or losing from having them on board — is the central problem for almost every business.

How much a US staff member really costs

The average salary of a white-collar staff member at the 25th percentile of the wage distribution in the United States (the bottom 25% of wages) is about $25,000 per year.
Payroll taxes add about 10% to that amount, and benefits (medical, dental, life insurance, workman's compensation, unemployment insurance, etc.) add about another 10%. This can be more if you offer a retirement program, or contribute to 401K plans, or don't require co-pays on medical benefits. So a $25,000 staff member may cost $30,000 per year before they even sit down.

Now add space, power, furniture, a computer, software, a telephone, local and long distance calling costs, payroll fees, supplies, recruiting and training costs, and so on, and the fully loaded cost of that single basic staff member at the base of your organization is about $36,000 per year, $3,000 a month, or $100 per day.

How much an offshore staff member costs

An offshore staff member costs just less than half that much generally about 45% of US costs. So, instead of paying at least $50,000 for an inexperienced software programmer just out of school (or $60K with a Masters degree), Active Media Outsourcing can provide you with a 4 year (or greater) experienced software developer for less than $2500 per month. That's a savings of at least $25,000 per year.