What is offshore outsourcing and what is the difference between Onshore and offshore outsourcing? What does it all mean, why is it the latest Outsourcing trend and where should you start? 

Under Offshore outsourcing is the commissioning of an external organization to carry out certain tasks. This takes place in a country other than the one in which the products or services were actually developed or manufactured. We take a look at the Comparison between onshore vs. offshore outsourcing together.

What is the difference between onshore outsourcing and offshore outsourcing? 

There are various Offshore outsourcing strategies. Let's compare onshore vs. offshore outsourcing. The difference between Offshore and onshore outsourcing is exactly what it sounds like. Offshore outsourcing is outsourcing to another country, not to be confused with Nearshoring - outsourcing to a neighboring country. Offshore outsourcing is possible anywhere in the world. At the Onshore outsourcing an internal process is outsourced to a third party in the same country.

Examples of offshore outsourcing

  1. WhatsApp: Numerous software development processes were relocated to Eastern Europe.
  1. Apple: Production units were relocated from the USA to China.
  1. Google: The company's research and development (R&D) department was relocated to Ukraine.
  1. Amazon: Customer service was extended to the Philippines and other Outsourcing countries such as South Africa.

These companies can therefore achieve cost savings through Offshore outsourcing experience. These are good examples of successful Offshore outsourcing and emphasize the global outsourcing trends.

The different offshore outsourcing options

There are several processes that are more cost-effective when Offshore outsourcing is utilized. Some of these outsourcing processes are:

  • IT and tech support: IT offshoring is a very popular Outsourcing process and is definitely in first place at the moment, as there is a global shortage of IT specialists gives.
  • Customer service: This is the second most popular Offshore-Servicewhich is outsourced, not only because of the cost savings, but also because of the additional languages that can be used in other countries.
  • Marketing and sales: This area is also often outsourced, as different languages are often required in sales and marketing.
  • Accounting and administration: Thanks to the cost savings, these areas are also being outsourced, and successfully so.

Cultural differences in offshore outsourcing

At the Offshore outsourcing it is all the more important to take cultural differences into account. Since Offshore outsourcing can be uncharted territory for many companies due to cultural differences, companies need to familiarize themselves with the other culture in order to work better with their customers. Outsourcing countries to be able to communicate.

Offshore outsourcing advantages

There are many advantages to offshore outsourcing. Here are a few points:

  1. Cost savings through offshore outsourcing:  There are many Cost savings with offshore outsourcingOne of them is that services are offered much more cheaply in other countries. Whether it's specialists for IT, administration or sales, as these are often third world countries Outsourcing countries a much lower wage rate for the same service provided in the country of origin Twice as expensive would be.
  2. Enables concentration on the core business: What makes successful Offshore outsourcing out? Mainly because a Offshore service provider only concentrates on one task of your company is Offshore Outsourcing so successful.
  3. Access to specialized experts: Another reason why Offshore outsourcing to a global Outsourcing trend has become the case is that companies have access to specialized experts. These are only available in the Outsourcing countries available and not in their own country. A few examples are language skills or a lack of IT specialists.

Some things to look out for when Offshore outsourcing should pay attention to are Quality management and Outsourcing and data protection. The reason is that monitoring from a distance in this respect is a The challenge can be.

Offshore outsourcing and innovation with Temporary Work International

It can be difficult to find the right Outsourcing countries because of the different culture, the different laws and the different Compliance in offshore outsourcing that must be adhered to.  We can help you, because we have Over 25 years of experience in offshore outsourcing. Here are some points where we can support you:

  • Drafting contracts for offshore outsourcing
  • Offshore outsourcing cost-benefit analysis
  • Compliance with regulations for offshore outsourcing
  • Quality management in offshore outsourcing
  • IT offshoring
  • Remote Teams placement
  • IT resource management
  • Support with cultural differences in offshore outsourcing
  • Consulting Risks with offshore outsourcing
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