1. Lower operational and labor costs are among the primary reasons why companies choose to offshore. When properly executed it has a defining impact on a company's revenue recognition and can deliver significant savings.

2. Companies also choose to offshore so that they may continue focusing on their core business processes while delegating mundane time consuming processes to external agencies.

3. Offshoring also enable companies to tap in to and leverage a global knowledge base, having access to world class capabilities.

4. Freeing up internal resources that could be put in to effective use for other purposes is also one of the primary benefits realized when companies offshore.

5. Offshoring, many a time is undertaken to save costs and provide a buffer capital fund to companies that could be leveraged in a manner that best profits the company.

6. Offshoring especially helps companies mitigate business risks.

7. Offshoring also enables companies to realize the benefits of re-engineering.

8. Offshoring to help companies expand and gain access to new market areas.