From Onshore to Offshore Outsourcing

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 countries.

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