Every time you come across the business terms outsourcing and offshoring, you will notice that the statement “reduced costs” will always be in tandem with them. You will rarely see an outsourcing and offshoring company ad that does not touch on the subject because it is the most enticing part of the offer. There is truth to the statement, or else the entire offshoring industry will receive accusations of false advertising. Low-cost economies in countries like the Philippines will allow your company to enjoy up to 70% labor cost savings.