From Onshore to Offshore
Before getting into the deeper schema of onshore and offshore
outsourcing, let us get into the definitions. Onshore outsourcing is
the obtaining of services from someone outside a company but within
the same country; while offshore outsourcing is the practice of
hiring an external organization to perform some business functions
in a country other than the one where the products or services are
actually developed or manufactures.
Capitalists like USA and Europe, uses both the strategies to gain
greater profit. Why did the author thought of such? Marketing
strategies nowadays become wiser and wiser as the seconds, minutes,
hours, days, months and years passes. Competitions in the global
market become higher and companies are cost-cutting and burning
their eyebrows to every details that they can cobble together on
their business method to achieve big bucks.
Companies, referring to USA, Europe and other capitalist nations,
who are hiring people of their own nation, realized that they spend
more on wages for a few numbers of employees. Smaller number of
employees would end up to less people performing the activities.
Less people performing is less output. That is onshore outsourcing.
Facing the competition, reducing the risk of depletion, companies
extended their arm to third-world countries like China, India,
Philippines and some. Engaging into countries as such makes sense on
cutting those irregularities of expenses. But the dilemma is the
quality of productivity may vary and may possibly not hit the
intention of the companies market, their buyer of services. This is
the risk of offshore outsourcing.
Today, the dilemma of capitalists surpassed its stages. They found
groups that they can use for a lower-cost but much effective and
highly competitive. Most low-cost countries, as stated above, are
now gaining income from capitalists and they (capitalists) are
assured of the services they (low-cost countries) produce. These
mutual exchanges benefit both parties. Now, they are on the rise to
reach the verge of success, both capitalists and the low-cost