[tagname] Ten Interesting News of the Day: Are There Many Things Left that Cannot be Offshored?

Monday, September 11, 2006

Are There Many Things Left that Cannot be Offshored?

Legal works started to be offshored at a bigger chunk when DuPont hired Office Tiger to help it offshore some of the cases involving the asbestos suits that are going to cost it millions of dollars where it is anticipating it could save at least $100 million by using paralegals in the Philippines and elsewhere where it costs only $30 an hour compared to $150 in the U.S. for similar service. The probability could have been that DuPont would have rather complied and pay out compensation simply to avoid the cost of defending the suit and that could be astronomical making the payout economically sensible.

But now, as long as Office Tiger delivers on time, it is in to save money on the arrangement, and it is going to set a new precedent, because even if there were minor legal services that were getting their way to Asia into countries like the Philippines and India, such an amount of work was unheard of. The fear is others might start to follow suit and it is said that it does not have much down side for now since what will be offshored will be the laborious part of the work, which could sometimes take 18 months, but now it could be done within three months and by doing so it is estimated that companies could save up to 30% of their cost. DuPont alone stands to save six million dollars a year from insurance related cases.





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