In today’s globally competitive industry, almost all organizations make use of offshore outsourcing and outsourcing. Why? Mostly because they want to reduce costs in manpower and at the same time, focus and handle their company better. However, just like any other individual, you might assume that both of them have the same definitions and incorporates the same services. Well, the truth is that they may offer similar advantages but they are all separate processes.

1. Outsourcing

According to the Business Dictionary, outsourcing is technically the process of contracting, recruiting or subcontracting nonessential tasks. Thus, they can minimize expenses, employees, facilities and gain competitive advantage. Also, outsourcing is another term for “contracting out.” This just means that the third-party company that offered the outsourcing services is the one accountable for managing the workflow and the work quality of each employee. The most common type of outsourcing jobs includes payroll, e-mail and call center services.

2. Offshore Outsourcing

Offshore outsourcing is also known as offshoring. It is referred to as “offshore” as it is a kind of outsourcing process performed in another country. Business Dictionary also defined the term as the progressing of a company’s several operations to another country in order to decrease labor costs or take advantage of “that country’s” good economic conditions. In this situation, organizations hire a third-party company in another nation which will be responsible for noncore operations. Big companies such as Dell and IBM are known for having offshore offices and outsourcing their employees at the same time.

Surely, both outsourcing and offshore outsourcing involve the same advantages. From reducing costs to upholding competitiveness and altogether, opening up to new possibilities. However, if you have to specifically choose from the two, having a basic knowledge about their differences is a great help to make the final decision. After all, you have to ensure that whatever you choose is the best for you and the company.

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