How Can Virtual Offices Bring Down Your Costs by More Than 70%?

The growth of outsourcing in the recent years is due to a paradigm shift in business philosophy. Prior to the mid-1980s, many multinational companies shifted their focus towards outsourcing due to their inability to manage the many companies they had acquired over these years. As more companies began to comprehend the advantages of outsourcing over managing all the activities by themselves, naturally, outsourcing became the next big thing in the business world. Outsourcing is when a company purchases products and services from an outside company rather than performing the same work within the framework of its infrastructure.

The reason to opt for an outsourced procedure is mainly due to its incredible cost advantages over the traditional methods. Employee leasing is yet another stellar feature here. The solution provider here recruits, hires, trains and pays the employees hired for their client.

When we think of outsourcing any IT process or a specific task, companies often contemplate about the cost savings that they will achieve with such a process and this includes skill equivalent staff and workers at a comparatively lower salary. Companies outsource primarily to cut cost but today, it also contemplates about reaping the benefits of strategic outsourcing — skilled expertise, flexible staff requirements, increased efficiency and so on.

Virtual offices in India bring down costs by more than 70 percent yet employee’s salary is just a part of it. They have many more credits to the name. Most business houses overlook the fact that lower salaries alone do not contribute towards cost saving efforts. Let’s look at a real office scenario. With your very own employees in the office, you are currently under an obligation to pay a monthly salary, provide for their insurance and other liabilities apart from tax requirements. Fixed costs are yet another major aspects here.

Fixed costs like office and desk space rental charged per employee and the cost of infrastructure. Computers and other devices, etc. to mention a few more. It is also necessary to mention the indirect cost involved here. If we take the unproductive time spent by each employee (this is an inevitable cost due to many reasons), the cost per employee increases by 30 percent.

Outsourcing can redefine office costing in the following ways:

1. Less office space: You may be a multinational with about over a lakh employees working in your office space or a mid-level agency with a few thousands, you can drastically reduce your office space and reduce your rental per employee with outsourcing. Virtual offices extend the facility of managing work without really providing any infrastructural assistance. This factor alone can reduce your expenses up to 50 percent which is indeed a massive cut in estimated physical office cost. Your business keeps growing oblivious to the increase in employee space cost.

2. More technical expertise in lesser costs: The programming and development niches are seeing newer horizons every passing day. With growing technologies, platforms and languages, software, web, mobile and cloud development seems to be a cake-walk. But not always you get what you expect. With so much competition across the tech space, quality skills are either rare to find or too much expensive. Virtual Offices at offshore locations help to acquire highly proficient programmers, coders or developers at a cost way less than you do locally. Rapidly developing and densely populated countries like India are a great location to set up virtual offices remotely.

3. Less Infrastructure assistance: Apart from the desk space that needs to be assigned to the employees, it is also necessary to extend other infrastructure for employees to work with. Be it a computer, stationery, tools, other machinery,etc. Virtual employees work without any such support from your side. A greater level of fixed cost may be reduced with absolutely no infrastructure based cost involved in here.

4. Less taxation cost and other amenity costs: With your process or assignment outsourced, you don’t have to consider the tax liabilities that may arise. You are also not liable to take their national insurance of tax contributions to make with their salary. With virtual employees in India, they are legalized staff i.e. Indian employees based offshore, freeing you from taking up such liabilities and contributing towards saving 40 percent of your costs. This also includes all other costs such as pension, provident fund and all other expenses that are involved while taking the cost of an employee into consideration.

5. Comparatively lesser salary expenses: Virtual employees from India only need about 70 percent of the salaries provided to local employees. Yes, that’s true. Many large corporations have started outsourcing or rather have patronized this trend for this very reason. Manpower at such lesser costs further helps in saving flexible costs. It’s important to also point out that 70 percent less salary doesn’t mean that the virtual employees are paid less. They are paid fair as per the standards of their respective countries.

6. Recruitment and training: If you have a real office and have a pretty good number of staffers involved in various activities, you definitely ought to spend a lot of money to train the existing staff and recruit new ones in case the older ones resign or there seems to be a turnover due to any particular reason. Hiring new staff members is an expensive affair and spending time and money on training also adds to the cost. Avoid these with virtual offices in India that completely take care of hiring employees based on the project requirements and other specifications. Training sessions too are included here, saving another 50 to 65 percent of the cost involved.

When talking about outsourcing, the advantages are many but there duction in virtual office costs as compared to real office spaces, make it a stellar option.

If you are serious about reducing your cost with offshore operations and making your business more efficient, you need to get in touch with a friendly service provider who can understand your business and discuss your needs and other requirements to make sure that you have the perfect solution. 
If that’s what you are searching for, we are exactly where your search ends. Let’s find a perfect outsourcing model for your business with Your Team In India. With so many success stories to our credit, we’re sure, we are the ultimate choice for a successful outsourcing story!

Drop us a line at, and we will be happy to help with a free consultation session.