Globalization & technological advancement has given way to enterprises across the world to expand their roots and take advantage of outsourcing as well as offshoring. It enables and empowers enterprises across the world to escalate their growth and attain bigger milestones in lesser time.
There are innumerable benefits of outsourcing as well as offshoring, but before we get to the advantages, let us help you figure out what outsourcing and offshoring mean and what the difference is between the two. More often than not, the terms outsourcing and offshoring are used as synonyms even though the two are slightly but significantly different.
Let’s proceed by getting the two terms straight.
What is Outsourcing?
Outsourcing refers to contracting work out to an external organization. In simpler terms, outsourcing is an agreement in which one company hires another company to work on a part of a project or even an entire project instead of doing it internally. It includes transferring employees and assets of one firm to another.
Companies generally outsource to gain access to talented and highly proficient professionals and take advantage of specialized skills, cost efficiencies. It is also considered highly efficient in case a company acquires more projects than the capacity of the in-house team and needs additional support.
What is Offshoring?
Offshoring is the relocation of a business process from one country to another, generally an operation process, such as manufacturing and supporting processes like accounting. In simpler terms, it means getting the work done in a different country.
Companies often opt for offshoring to save time as well as money. It also allows companies to gain access to talented and competent professionals. When a company considers offshoring, it also gives them the option to expand their roots to another company.
The fine Line between Outsourcing and Offshoring
Outsourcing and offshoring both have distinct advantages, the major difference between the two lies with the geographical aspect. While outsourcing can be done from a company located within the vicinity, offshoring is done in another country altogether.
If you are considering outsourcing or offshoring, here’s why you should consider Abaca:
• Tech-Savvy & Innovation-Driven Team
• Technological Competence
• Edge Above Solutions
• Time & Cost-Effective Services
• Effective Weekly Budget and Timeline Tracking System
Contact us now to get in touch with our team!