Tuesday, April 6, 2010

Why Offshore Outsourcing?

It’s understandable why most companies are choosing to outsource much of their production & development these days. By using a third party to take care of the non-core components of your business, you’re saving both time and money, and you have the opportunity to focus on the core components of your business.

What is the difference between Offshore Outsourcing and Outsourcing?

Offshore Outsourcing is a more specific type of outsourcing in which the services that you contract outside of your business are literally off your shore, in a different country. Now, it’s one thing to outsource within your own country and another to outsource outside your own country. There are both benefits and disadvantages for Offshore Outsourcing.

Offshore Outsourcing is Everywhere

If your company is located in the United States and you sell computers, you’ll want to be able to produce the parts of the computers with the highest quality possible for the lowest price. There’s no doubt that if you were to manufacture your computers in China, it would be a fraction of the cost of manufacturing your computers in the U.S. Offshore outsourcing is just cheaper. That’s why every bowl or cup or t-shirt you look at has “Made in China” written on it. This is also why you end speaking to someone from India every time you call for technical support for a product you bought in the U.S.

Offshore Outsourcing & the Economy

Whether or not offshore outsourcing was an influential component that helped lead our economy into its current situation is debatable. For years Americans were screaming about the effects of closing down the U.S. factories and relocating them to China or Japan or South Korea.

It’s true that people in the U.S. lost their jobs because of offshore outsourcing, but on the other hand many people gained employment in developing countries because of the relocation of factories and services. And let’s not forget how much cheaper it is to outsource offshore. The quality isn’t negatively affected; in fact more often than not the quality of the products and services is better. And as the economy continues to decline, offshore outsourcing is only on the rise and for good reason; companies can’t afford not to use offshore outsourcing.

Remember, when people used to say that it’s not quantity that matters, it’s quality. What if you could have both quantity and quality? With offshore outsourcing you can.

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