Juan Diego Diaz Echeverri

Attorney – International Business

Essay: Why a US company should consider hiring offshore talent from your country.

INTRODUCTION

In this essay we will try to explain the advantages that American companies have of hiring offshore
personnel outside their country. These important advantages can be seen from savings in the cost of
labor for companies, as well as the attraction and retention of the best international talent.

DEVELOPMENT OF THE TOPICS

In the first place, we will focus on defining what is meant by offshore. The ABC newspaper
understands offshore companies as “An offshore company is a company whose main characteristic
is that they are registered in a country in which they do not carry out any economic activity. The
countries in which they are based are usually tax havens, to benefit from the tax advantages they
offer. The foreign persons who control the company use the tax haven as their legal domicile.
Broadly speaking, there are three great advantages it provides: asset protection, confidentiality
and privacy, and tax advantages. (ABC, 2016)”.

Thus, US companies can count on great advantages by having offshore companies or offshore
personnel, who work for said companies, but without being physically in US territory.

As explained above, there are certain advantages of hiring people outside the United States, to
perform work via the Internet. One of the first great advantages is the substantial saving of
resources for the company, because in the United States the minimum wage is considerably higher
than in most countries in America, Asia or Africa. In that sense, the salary that would be paid to a
worker in a country like Colombia is much lower than the salary that would be paid to a US worker
on US soil. In turn, for the worker, in this Colombian case, it is a great advantage to obtain his
income in dollars, where the currency is very strong against the Colombian peso - COP, and his
purchasing power will be much greater.

On the other hand, another important advantage for hiring offshore personnel lies in attracting and
retaining the best international talent, since there are people in the world with great abilities who
can contribute significantly to the creation of value in North American companies, and in turn
contribute to the country's economy.

CONCLUSIONS

To conclude, we can emphasize that there are different advantages in hiring offshore personnel for
US companies and also advantages for the hired personnel, since it means a transcendental increase
in their income and the quality of life for you and your family.

In addition, another fundamental advantage is the attraction of the best talent worldwide and the
diversification of thoughts, points of view, ideas and approaches in North American companies.

Juan Diego Díaz Echeverri

Phone: +57 3203047809
E-mail: juandiegode@hotmail.com