What is Offshore Outsourcing?
Offshore outsourcing can be defined as the system of collaborating with an external organization and assigning that organization to carry out some of your business roles. Usually the product or the service which has been outsourced would not be sold in the offshoring location; it would only be marketed in the outsourcer's country. Offshore outsourcing gives organizations access to high-quality services at lower operating costs.
Categories in Offshore Outsourcing
There are basically three main categories in offshore outsourcing; business process outsourcing (BPO), infrastructure and technology outsourcing and software outsourcing.
Organizations usually outsource parts of its process, which is important, but not vital for the organization's stand. Processes like customer support, payroll processing is outsourced to save on costs. BPO's can be further sub-divided. Back office outsourcing is outsourcing the organizations internal roles, while front office outsourcing is outsourcing the organization's call center and customer support services. Call centers, help desks, finance and accounting services for the organizations internal operations are all examples of offshore outsourcing.
Infrastructure and technology outsourcing services generally include services that support an organization, such as, networking, technology services and support, etc. Offshore software development services include software development services. India, China and Russia are the three leaders offering software development services.
Choosing Offshore Outsourcing
Based on the following factors, organizations usually choose whether to opt for offshore outsourcing or not. Organizations generally choose offshore outsourcing when the project or business process has functions that have to be regularly carried out. Other factors are if the work in the project can be transferred over the internet and if the project is easy enough to start up in the offshore country. Most organizations consider the cost factor, and choose offshore outsourcing to cut huge costs.
