How Strategic Offshore Hiring in India Transformed a Global Tech Company’s Talent Strategy

Rising operational costs and a tightening labor market have left many organizations questioning how to continue growing while keeping expenses in check. For one multinational technology company, these challenges sparked an innovative partnership with Allegis Global Solutions — and the results speak for themselves. Discover how a data-driven offshore hiring strategy opened doors to transformation and substantial savings for the organization. 

The Challenge: Navigating Cost Pressures and Evolving Talent Needs 

Faced with escalating costs across North America, this tech leader needed to scale its workforce without sacrificing quality or agility. The demand for specialized skills in AI, machine learning, full-stack development and cloud architecture only heightened the complexity of their search. Increasing bill rates to meet wage inflation — benchmarked at 4.4% for 2024 — seemed at odds with the company’s cost-saving goals. 

Compounding the challenge, widespread labor strikes in late 2023 and early 2024 caused significant disruptions across multiple industries. These strikes, among the most frequent since 2000, highlighted the rising costs and complexities of maintaining a US-based workforce. 

Data-Driven Insights: AGS Market Analytics in Action 

To chart a new course, the AGS Managed Services (AGS) market analytics team conducted a comprehensive analysis of global rate structures and workforce trends. The findings made it clear that alternative hiring strategies were needed to balance cost, talent quality and operational resilience. Simply raising rates in the US was unsustainable and wouldn’t solve the underlying issues of scalability and resilience. 

Instead, the team recommended a flexible, data-driven strategy. By exploring international talent pools and cost efficiencies, AGS demonstrated how offshore hiring in India could ease immediate financial pressures and establish a foundation for long-term growth. This approach led to greater workforce stability, improved risk management and a stronger response to the tech industry’s changing demands.
 

Solution: Launching a Strategic Off-shore Program in India 

AGS’ Program Management Office (PMO) developed and implemented a plan leveraging the newly created India rate card, built by the market analytics team for AGS’ 2024 expansion initiative. This rate card introduced a robust leveling system, designed to align with best-practice pricing and tailored to the client’s unique needs. By categorizing roles by both experience and education, AGS ensured fair and competitive compensation for all contingent workers. 

The India-based hiring program offered a dual advantage: access to highly skilled technical talent and considerable cost efficiency. As the IT workforce in India matures, this approach allowed the company to benefit from standardized pay without the volatility of the North American market. 

Enhancing Service Quality, Reducing Time-to-Fill and Cutting Costs 

 
Offshoring operations quickly yielded results: 

• Assignment Growth: Monthly assignments for call center contractors soared in the latter half of 2024, rising from an average of 23 per month to 62 in November and 59 in December, despite the program’s official launch in May.  

• Cost Efficiency: Over eight months, the average total cost per worker in India was 524% lower than for equivalent US roles. Continued momentum into 2025 generated average savings of $81,200 per monthly assignment in the next six months. 

Much of this success came from offshoring software engineering and call center roles — areas well-suited to standardized, remote work. 

Beyond cost savings, the company saw gains in both customer service quality and hiring agility. India’s robust cloud computing expertise supported ongoing development and system optimization, while off-shore teams provided real-time and after-hours troubleshooting — a clear time zone advantage. 

Notably, the average time to fill open positions decreased significantly from 36 days in 2023 to just 14 days by 2025. By then, 87% of new IT and call center hires were based in India, with software engineering seeing the highest growth.

The Long-Term Value of a Global Talent Strategy 

This case study highlights the importance of effective rate card management in controlling costs and enhancing operational efficiency. By leveraging AGS' market analytics team and applying a strategic approach to data analysis and supplier collaboration, the client achieved remarkable improvements in cost management and transparency.