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Outsourcing vs Offshoring: What’s Best for Your Business?

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Outsourcing and offshoring sound similar but there are a few differences between them. If you’ve worked in a company like a call center outsourcing in the Philippines, you must have an idea of the differences between the two. And if you are a company owner and are planning to grow your business through outsourcing or offshoring, you need to know their differences to choose which method is the best option for your company.

Before we discuss the differences between each service, let us know first what their function and purpose are. When we say outsourcing, it is the process where a company contracts work to a third-party provider. Instead of doing the work themselves, they hire a third party to do it for them. While offshoring refers to a shift in business operations to another company. In other words, you are moving work processes to another country, but they are still your company’s employees.

Outsourcing vs Offshoring

The table below will show you the clear differences between outsourcing and offshoring. It will help you learn how each method functions and how to take advantage of its purpose for your business’s success.

Outsourcing Offshoring
Objectives
To take advantage of high-quality human resources services.
To reduce costs.
Workforces
Your company’s employees play no part in outsourced work processes.
Offshored workforces may or may not be employees of your company.
Cost
Outsourcing employees are more flexible as they are hired on a project basis.
Offshoring employees, on the other hand, requires more investment in training, equipment, and payroll expenses.
Activities
To assign non-core works or projects that should be completed from start to finish.
To relocate the complete business process to another country.
Degree of Control
Outsourced workers are not completely under your supervision. They use their own equipment and procedures so you have limited control over them.
You have a higher degree of control over your offshore employees since they are under your company’s HR policy. They also use your systems, equipment, and procedures to accomplish their work.
Work Functions
Graphic design, search engine marketing, and administrative work are specialized non-core functions that are typically outsourced.
Benefits
• The process is fast and efficient.
• Lets your company center its attention on its core competencies.
• Contract-based work.
• Source superior expertise.
• Cost savings.
• You have more control.
• You can keep proprietary information.
• Low-cost.
• Larger talent pool.

The Best Option for Business Growth

Before choosing between outsourcing and offshoring you need to determine first your company’s goals and needs. You should consider the differences, functions, and benefits of each business method. To not regret your decision in the end, make sure to be meticulous. Study and research the two methods before making a decision.

When you’ve finally made up your mind, make sure to work with a professional and highly trusted company. If you choose to outsource, choose a call center outsourcing in the Philippines that understands the constant changes and growing operations. Make sure that the company has an experienced and hands-on team of managers, and can deliver professional services with a touch of personal care to each project. In other words, choose Technodream!