People should know that Outsourcing and Offshoring are different
Source:  View: 1821 Date: 2012-03-09

Outsourcing has now become an important industry in the world economic development. However, many people are confused in the definition of offshoring and outsourcing. Indeed, there is a situation that many people were hired to do the business process outsourcing services, but not familiar with their meaning. The majority of people believed that offshoring and outsourcing are two synonymous vocabularies.

BPO has reached to one of the world’s largest industry. In many cases, companies offshore find business process outsourcing ideal when there are internal problems arise. This may include lack of time to focus on company’s development and core competencies, lack of knowledge improvement in staffs and worry about operational costs. The third-party company that are sub-contracting a service will function as extensions to perform business processes like data processing, accounting, design, and even back-office jobs, with limitless prospective.

The recruitment of new staffs to satisfy additional function is difficult. It is even more difficult to find competent employees within the company. Many enterprises have now opened services to accept outsourced projects. Because it can generate more profit with less effort. They are aware that they master expertise in the demanded services and business process outsourcing companies also pay well to get it. Therefore, business process outsourcing is a good idea because it is not that problematic, laborious and expensive. It is the process that a business pays for services to be done from outside the company.

Conversely, there are businesses called offshoring which grab the most possible process that will lessen operational cost. It is business process that the provided products and services are specifically offshore or outside the country. For example, European and US IT companies choosing China web development services. The cost of living in China is way cheaper compare to Europe and US. Another good way of business process outsourcing strategy is offshore web developing which is rapidly growing in web industry.

China is now the hub of business process outsourcing around the world. In addition, the country is considered as one of the best sources of IT and web development services. Competitions between companies keep on growing which, on the other hand, causes reduction of the cost of development. China can offer proficient IT services at a very affordable price with good quality of service.

If the outsourcers and providers both sides can be coordinated to accomplish the work well, then the two sides will achieve their mutual benefits.

This only represents opinions of Devott Service, and your comments and discussions are welcomed via info@devottservice.com.
 

Devott Publications
The Selection of the TOP Global Outsourcing Destinations – China TOP 15 (TGOD China TOP 15) Ended and Its Rankings and Research Reports are Now Available Worldwide