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The processes of offshoring and outsourcing are known since the beginning of the 20th century after the world wars and they started as filling manufacturing gaps of required skills and people. After a whole era later, the beginning of the 21st century became usual practice for any business regardless of their size or area, it became a standard in the blue-collar recruitment and every wise enough company at some point uses it. When the businesses start to grow, to expand or think about revising of their spendings, to reduce their costs with alternative methods, they are looking to do:

OFFSHORING is the relocation of a business process to the same company but in a different country. For example when a company moves all their accounting to another country.

OUTSOURCING  is when a company hires someone from outside of the company to do extra jobs they have got or to take over a whole process of their business. It could be a different company and it doesn’t matter where is based.

It is the process of contraction secondary functions such as call center, accounting, bookkeeping outside of the business itself.

However these terms are fluid and there’s not a strict boundary in between, they can overlap.

THERE ARE ALSO PROCESSES KNOWN AS:

INSOURCING that is opposite outsourcing, it is the process of incorporating a company from the outside to the business.

OFFSHORE OUTSOURCE is when a company outsources a business process in an external from the home company and country. For example, if I would like to outsource my accounting I would go for my partners in the Philippines and would ask them to do that for me. By the way, they are running exclusive offers at the moment, very low prices for First Time Clients. Please make sure you contact me, hitting the button below. 

NEARSHORING when outsourcing happens near the business, eg in the nearest country or on the same continent.

I spoke about their process here: Outsource a job

FARM-SHORING refers to outsourcing to USA rural-located companies.

HOME-SHORING  is IT and telecommunication related when the job is been performed from home with all IT and telecommunication appliances and equipment required to perform the job.  This is something that I am involved in. Please check my services: Marketing, Recruitment, Web Platforms.

AN INTERMEDIARY is when an outsourcing company is outsourcing its contract.
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WHAT ARE THE BENEFITS OF ‘SOURCING’ EXERCISES?

  • Focus on the core of the business
  • Cutting costs on taxes, labor, medical care
  • Finding specific and hard to find skills in the local environment
  • Getting work-life balance for small companies
  • Customer service 24/7
  • Stress-relief

DISTANT OFFSHORE OUTSOURCING  is on-trend now as it saves a lot. For example, if an hourly rate of an accountant in London is £ 15, hiring an equally good one will cost as highest as £7 and even less depending on the contract period.

THE FUTURE PREDICTIONS

The boom in outsourcing has now just started, we are just about to see yet what the future brings, but overall very positive as we see it moving forward and growing.

TECHNOLOGY INPUT

Digital technologies, cloud-based technologies, innovations, and services, Artificial Intelligence, Big Data … all these support the big and fast-moving forward and advancement of this type of service.

DISTANT/REMOTE EDUCATION

It also ensures the rapid growth of educational and cultural exchange that leads to equally qualified experts everywhere.

 

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