The present business world is very dynamic and the ways and means of carrying on the work in the IT industry keeps on changing consistently. Previously people had a conflict between doing work in-house or outsourcing it and off late it has changed to should the work be outsourced onshore or offshore.

Onshore outsourcing means to send the business process to a U.S. based supplier for doing some work. Whereas offshore is to export the business processing work to another country. Both these ways have become popular in the modern times and each one has its own benefits and drawbacks. The motto of both the outsourcing methods is the same i.e. to minimize the operating costs, raise the productivity, and reallocate financial resources to other areas.

Let’s just look at the benefits of having an onshore deal for outsourcing the business process. Firstly, the onshore supplier is near to your business location as it is in the same country, this makes the deal much comfortable for you and communication, and travelling becomes easier. Besides this there are legal advantages of intellectual property laws. Since the work is transferred in the same country, the same rules of intellectual property law are followed.

On the other hand, offshore outsourcing beats onshore in cost effectiveness. The costs of business processing are minimized to a greater level with offshore outsourcing. However, there are certain indirect costs involved in it such as communication charges, training the employees, travelling and so on. But yet, in spite of such expenses the company can have sufficient savings in their pocket by outsourcing the work offshore. This also results into rise in the productivity as the staff in the offshore company is generally well trained and qualified.

It also results into saving of the labor cost. Hence, the benefit of offshore outsourcing undoubtedly out grows the advantages of the onshore outsourcing of business processes.