The Two Trends In Outsourcing: Onshore and Offshore

The modern marketing industry has soared greater heights, injecting dynamic means to carry out a business. The information technology age has modified how businesses deliver their services to their customers. This is even made more dynamic with the trend today which is outsourcing. Outsourcing can be branched down into two (2) categories – onshore and offshore.

Onshore and offshore outsourcing are greatly practiced in today’s modern times. Both may have their own crowning glory and revolve around the same process, but the determining factor whether you’d go for which one will boil down to your needs and preferences. Onshore and offshore outsourcing also have their own drawbacks which would make every company think twice. Despite of their same goal orientation which is to save on staffing cost, increase productivity, save out office space and the like, they have their own distinct characteristics that make one more preferable over the other.

Onshore Outsourcing vs Offshore Outsourcing

Onshore Outsourcing

Onshore outsourcing limits the outsourced work within the locality or the country of origin. For example, an Australian company outsourcing their back door tasks to freelancers with in the same country. Onshore outsourcing will not impose as much risk as offshore outsourcing, but the benefits that you would enjoy is not as great and as rewarding as its foreign counterpart.

The first and biggest edge over onshore over offshore is its geographical advantage. Onshore outsourcing is only limited to the country of origin, making outsourcing providers more accessible and is nearer to the company itself. There will be no problem with traveling and it makes communication between you and the outsourcing team more comfortable and available.

Aside from that, when it comes to intellectual property rights, you and the outsourcing company that you are working with are covered by the same legal rules while in the practice of legality and ownership of intellectual properties.

Onshore outsourcing business can help your company save on office space, cost and be more efficient. The geographical limits may just allow you to come in contact with the team every day and supervise their operation. An onshore outsourcing company may even be that company sitting next to your office.

Offshore Outsourcing

Offshore outsourcing pretty much has the same ideals of an onshore outsourcing strategy. This growing industry/trend beats onshore outsourcing when it comes to the operational cost and efficiency. The monetary requirement to have your back door tasks ran is a world of difference when it comes to onshore. It is without a doubt cheaper to outsource in foreign countries like the Philippines and India.

You can save 50% or more to get the whole process done for you, despite of the miscellaneous expenses that comes with it (e.g.telco, traveling, employee training and etc.). This will help your company have more savings while at the same time boosting your productivity rate. If you wonder how it will increase your production, it’s simple, you get to have more people that can work for you with your short-funded budget. The more people operates to your advantage, the more return you will get.

The Conclusion

Offshore outsourcing may come with more risk than getting it done nearby. But if you have been cautious and wise and choosing the right vendor, everything would surely turn out fine. Offshore outsourcing business outplays onshore outsourcing and is rapidly picking up in today’s modern business trends due to the great advantages that it promises to every small, starting or even big business that desires success.

Source: EzineArticles
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  • http://www.virtualemployee.com Outsourcing

    Offshore outsourcing of business processes is quite different from that of projects as in IT services. In IT services onshore presence would enable closer interaction to complete projects on time and also help in creating work packets for offshore. Increasing onshore presence would provide customers and service providers with the option of proximity and psychological reassurance while outsourcing.

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