The Differences in Outsourcing, Offshoring and Offshore Outsourcing

In this article, firstly we are going to define what outsourcing, offshoring, and offshore outsourcing are; and learn about their process. In the next section, we will discuss the advantages of these three activities as well as their similarities and differences.

Let start with outsourcing

The convenience of outsourcing is that you don’t need to really bother with it anymore because there is a team of experts handling it for you. In addition, you are received many benefits such as :

Access to better resources: You do not have to spend high costs and more time investing in recruiting and training new employees for your company. Outsourcing will save your limited financial resources but still provides you quality services.

Betterment of time zone differences: If the outsourcing company that you are hiring is in a different time zone, your work will always be performed continuously after your internal staff is finished. That means when you are taking a break and falling at sleep after a hard day, your work is still done by your outsourcing team in another time zone, and you just need to get the results the next morning.

  • Decreased cost of operations: Outsourcing means you are handing over tasks to an external organization, so you do not need to invest in training, research, and development. The external agencies have already had their own teams and infrastructure.
  • Better concentrate on core business: The outsourcing company helps you handle tasks outside of your fields so that your company can focus on developing core strengths and competencies. This will help you develop your brand and company’s core value faster.
  • Economies of Scale: When the company locates an office in a foreign country, it not only receives advantages in labor costs but also in other things such as land, infrastructure, rent, internet connection,…
  • Advantages of Government Policies: Many countries around the world have tax exemption policies for foreign business; and the government encourages them to invest in that country. Tax exemption and the use of cheap credit can improve the bottom-line of the business.

Advantages of Offshore Outsourcing

As mentioned before, offshore outsourcing is just outsourcing outside the country. There are some advantages of offshore outsourcing was concluded below:

  • Access the expertise of an outsourcing company: You have the right to use skills that are within the main fields of the company you outsource. For example, if your company does not have the experience in Human Resources or accountant, offshore outsourcing it to a vendor whose core strengths are HR or accountant. This means you can concentrate on your core business instead of wasting time and resources on it.
  • The ability of extension: You can expand your resources up and down based on your demand because you are not in rigid contracts with the vendor. Through it, you can reduce costs and get more effective for your business.

To sum up, these are the advantages of outsourcing, offshoring, offshore outsourcing. You can choose the one that is the most suitable for your company. If you are seeking civil engineering outsourcing services like Civil drafting services, CAD Drafting Services, Civil Engineering design services, etc. EPO Industry could be a good candidate for you.

Leave a Reply