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Calgary Software Application and Web Development Articles |
Outsourcing V/s Offshore Outsourcing
While Outsourcing stands for giving out a part or certain parts of your
business operations to a regional or local distinct business entity,
offshore outsourcing implies delegation of the selected business
operations to an offshore location outside the country.
The two concepts share some advantages and differ on others. The common
benefits of outsourcing and offshore outsourcing include doing away
with the burden of mundane business operations that can be easily and
skillfully handled at an off-site location, generally for a lesser
budget. Outsourcing is a brilliant idea to relieve the business entity
from vain exertion and instead pay better attention to ones specialized
services areas or may be provide more agile customer care. Also,
outsourcing excuses the enterprise from the substantial set up costs,
viz. the cost of work space, manpower, stationery, systems and other
miscellaneous expenses that would otherwise incur, if the jobs are not
outsourced.
While local outsourcing manages just a couple, offshore outsourcing
comes with a whole baggage of advantages. The highlights of offshore
outsourcing remain the niche economies available at the offshore
location, including exceptional professional talent for considerably
lower costs. In fact, inspired by the dynamism of offshore outsourcing
model in India, not less than 40% of the Fortune 500 companies are
already taking advantage of it, including big names like MicroSoft,
Motorola, Oracle, GE and Lucent.
Economies of scale is another citable advantage from Offshore
outsourcing, as offshore destinations generally conduct themselves as
specialized ventures that also take up similar jobs from other
companies across the globe. As statistics has it, offshore outsourcing
can bring down the costs for you from 50% to 30%, subject to onsite and
offshore resources.
Offshore Outsourcing also allows you to make a careful choice as
regards the standard timeframe on offer, so as to render the effective
working hours almost round the clock. For example, IST and EST are
complimentary in nature with around nine and a half hour difference.
This in turn, considerably shrinks delivery time for US-based companies
translating into achievement of business targets well within budget and
sped up job schedule.
Moreover, offshore outsourcing can span across wholesome backend
business operations; the most prominent of all being IT and IT enabled
services (ITES) with a whopping 28% of the entire share. As per
reliable reports, majority of IT based outsourcing contracts are
already moving to India, in spite of competitive rates offered by China
and Russia. India offers wider talent and more purchasing power for US
dollar, in turn saving billions of dollars for its US counterparts.
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