How to measure return on investment on IT-outsourcing

Aug 25, 2017

What does it cost?

This is the most frequently asked question when we enter into dialogue with Scandinavian companies. And of course it is interesting and very important when you buy a product. We know that it requires a quick response and that the response must be well founded and properly documented.

That’s why we use a model that very quickly shows what the relevant offshore workers are costing. The model is relatively complicated and contains many factors that companies often tend to forget when looking at the actual costs to hire an employee in Scandinavia – for example recruitment, social costs, administrative costs, premises, work equipment, furniture, etc. All of these factors are included and taken into account in the model and they give a true and fair view of possible savings.
It is important that it gives a true picture, in order for clients to make a realistic comparison with offshore.

All costs for offshore are also included in the model, This includes; agreed travel costs, so that everything is included when comparing Danish employees with offshore employees. This also applies to travel for Danish employees who need to travel to Cairo and spend time with their employees there, as well as expenses for trips for offshore workers who come to Denmark for shorter or longer periods. The calculations are valid for one year at a time and allow customers to see the return of investment year by year.

Most will experience a costreduction of between 40 and 60% per year. Employee savings are, of course, dependent on how specialized employees need to be and their salary level. If the offshore workers are to replace existing Danish employees, the numbers will of course reflect that.

Once the ROI calculation is done – with all relevant costs posted – all parties have a completely clear picture of the actual costs and how much is actually saved.

How to measure return on investment on IT-outsourcing

Aug 25, 2017

What does it cost?

This is the most frequently asked question when we enter into dialogue with Scandinavian companies. And of course it is interesting and very important when you buy a product. We know that it requires a quick response and that the response must be well founded and properly documented.

That’s why we use a model that very quickly shows what the relevant offshore workers are costing. The model is relatively complicated and contains many factors that companies often tend to forget when looking at the actual costs to hire an employee in Scandinavia – for example recruitment, social costs, administrative costs, premises, work equipment, furniture, etc. All of these factors are included and taken into account in the model and they give a true and fair view of possible savings.
It is important that it gives a true picture, in order for clients to make a realistic comparison with offshore.

All costs for offshore are also included in the model, This includes; agreed travel costs, so that everything is included when comparing Danish employees with offshore employees. This also applies to travel for Danish employees who need to travel to Cairo and spend time with their employees there, as well as expenses for trips for offshore workers who come to Denmark for shorter or longer periods. The calculations are valid for one year at a time and allow customers to see the return of investment year by year.

Most will experience a costreduction of between 40 and 60% per year. Employee savings are, of course, dependent on how specialized employees need to be and their salary level. If the offshore workers are to replace existing Danish employees, the numbers will of course reflect that.

Once the ROI calculation is done – with all relevant costs posted – all parties have a completely clear picture of the actual costs and how much is actually saved.

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