Nowadays, we hardly find an organization that operates entirely on its own. Organizations are now more inclined towards cost-effective means of executing their business activities. They hire an external third party. The third-party organization performs a part of its business activities, which they are engaged. It is Outsourcing. You can either outsource from your own country or another country.

Now, the question is when a company should outsource offshore teams?

We will dive into when a company should outsource offshore teams. But let us first bust a myth that says Outsourcing and Offshoring are the same.

Although Offshoring and Outsourcing are closely related, they are not the same.

Please continue reading to know how we have discussed the difference between Offshoring and Outsourcing.

Do you know what Outsourcing is?

“Outsourcing is hiring a third party, from the same country or another, to execute a part of their business activities. “

With outsourcing services being a top trend, small or medium-sized businesses can also gain the right talent for crucial business activities. It is possible to even when they don’t have enough finances and human resources.

Some good and bad of Outsourcing

Just like any other thing, Outsourcing also has some good and bad. Let us see what these are.

Pros

  • You can get a pool of talent at a much-reduced cost.
  • Outsourcing can increase productivity.
  • It frees you from the hassle of hiring more employees.
  • It gives increased efficiency.
  • You can better focus on your core business activities.

Cons

  • It may result in poor communication.
  • Organizations may encounter security breaches.
  • Outsourcing may lead you to have less control.
  • You can also experience a lack of focus on an outsourced project.
  • The quality of a product or service is not always guaranteed.

Do you know what Offshoring is?

A practice where in-house company jobs are performed in another country is called Offshoring.

Though Offshoring is widely practised in the USA due to reduced cost, a lot is also criticized. This criticism is because Offshoring is blamed for sending jobs from the USA to other countries.

Pros

  • Offshoring can significantly reduce labour costs and other operating expenses.
  • Due to offshoring business functions to other countries, organizations can mitigate bankruptcy risk.
  • In Offshoring, organizations transfer jobs to teams having specialization and experience in the respective areas. The units can handle all the problems with minimum hassle.
  • It allows for getting low-cost labour from developing countries.
  • It improves the economic conditions of both of the countries.

Cons

  • With Offshoring, it becomes difficult to establish an effective communication system.
  • Offshoring teams may fall into unethical practices if organizations don’t provide them proper monetary and other incentives.
  • Because of long-distance, organizations can’t visit their business units resulting in poor management.

What about blending them? Get ready to outsource offshore!

Offshoring is a far better approach. It is because Offshoring allows you to retain full control. And this consequently results in improved quality of product and services. But having your team overseas is not a piece of cake. Why not consider Outsourcing offshore? Outsource IT service is there to help you make the right team for you. If you want to outsource offshore, outsource IT service is your stop-shop.

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