Although outsourcing and offshoring can simultaneously take place, the two definitely differ in terms of location and in the selection of workers. During the process of offshoring, a business moves all or part of its activities to another country. Whereas outsourcing, is the process of utilising professional third party workers for traditional in-house business tasks. This can take place both inside or outside a company’s home country.
Outsourcing is a general practice that businesses use for cost solutions, gain access to employees with special skills, and acquire other benefits. Unlike offshoring, outsourcing does not need to take place in another country to happen. Businesses that stay in their countries of origin may seek out local third party workers, which results in outsourcing. Outsourcing can, however, take place outside of a company’s country of origin as well. Becoming more and more popular is the search for a good company that provides architectural outsourcing servicestohigh professional standards.
Offshoring is often referred to as a part of a larger set of outsourcing. When the costs of running a company are lower priced than in another country, the company may decide to move their activities or offices overseas in order to cut back on expenses. If company activities are still managed by in-house employees while this happens, outsourcing and offshoring are not occurring simultaneously. Should the company choose to shift duties to a third party to further reduce costs, however, then the two practices are both being used. A lot of instances of offshoring do involve outsourcing.
The location of these practices is another difference between outsourcing and offshoring. Outsourcing does not require that the third party being hired to complete a job, be from another country. Many instances of outsourcing are done within a country, such as when a printing company may employ a third party shipping business to transport its goods, rather than using its own staff. Outsourcing within a country’s borders can be just as affordable and popular as doing so internationally. Offshoring, on the other hand, always takes place outside the business’s country of origin.
The Trend is growing
There is now a definite growing trend in a lot of business industries to use outsourcing, and occasionally offshoring, for call centres. An abundance of businesses now outsource their call operations to employers in other places. If a business decides to set up a new call centre in another country, offshoring occurs. A business can utilise both practices, individually or simultaneously, for these and many other activities.
A number of people believe that outsourcing and offshoring are limited only to the information technology, or IT, industry. And, it is a fact that offshore IT outsourcing is a common practice of many businesses, the activities do not only apply to this field. Other frequent types of outsourcing and offshoring combine knowledge process outsourcing, business process outsourcing, and offshore software development, to name just a few.
Almost any type of business has the potential to use such strategies and will certainly expand in the future.