Topic Offshore

What is “offshore”

Offshore is based outside of one's national boundaries. The term offshore is used to describe foreign banks, corporations, investments and deposits.

Introduction •Began in 1970s with U.S. computer manufacturers hiring technical

staff from India for service centers (initially to save costs).

•India developed skilled base of technologists (understand wide

range of ops systems and service a variety of hardware).

Barriers of the trade

•Communication due to language/cultural barriers

•Time differentiations

•Bad management, Security issues

Demand started…

India

Start for india• Most mature here

• Holds 85-90 percent of offshore outsourcing market today

• Maturity due to government support for past decades and their

continued improvements of the education system built by the

British

Size of market• In 2014: $20 billion market

• in 2015: 3.3million US jobs and $136 billion in wages will transfer offshore.

Where Off Shore

• India • China • Mexico• Ireland • Canada

Where Off Shore

• Singapore• Russia • Malaysia• Philippines• Pakistan

Purpose of the trade

•Cost savings – up to 80 percent

•More resources = attention to core competence, design and

business knowledge

Purpose of the trade

•Offshore needs meet with competence

•Demand for temporary work and consulting met

•On-demand, at short notice, without commitments

Why Invested • Specialist financial services :  Highly

developed financial services sectors with expertise in stock broking.

• Lower levels of regulation : A broader range of investment options are available.(huge funds)

Why Invested • Avoidance of forced heirship: Rules, a person is not free to dictate

who will inherit their estate. Alternatively, forced Alternatively heirship laws require a departed person's estate to pass to one or more blood relatives (usually children and grandchildren).

• Investment diversification : Risk can be managed by diversifying investments among a wider range of options than are available for onshore investment.