The difference between Offshoring & Outsourcing
There’s a common misconception that Offshoring is the same thing as Outsourcing. While the two can work together, separately, they mean different things. Offshoring means your work is getting done in another country by trained and skilled people, whereas Outsourcing means you’re contracting work out to a third party.
Both processes can take advantage of specialised skills, but also lower costs and getting work done faster. Why do we want you to understand the difference, you might ask? Because employing one or another can either make or break your business.
Let’s put it into perspective. Outsourcing, or subcontracting — is when a consultant or a freelancer comes into your business, and without being fully integrated into your company’s culture or everyday running of the business, they try to help you with either one process or another. When it work, it works, when it doesn’t, well that turns into a horror story. More often than not, you end up paying more money than anticipated, and realise you were better off without it.
Offshoring, on the other hand, is when a virtual team becomes an extension of your company that is being trained in following the same daily processes as your local team does. It allows you to become more efficient in providing faster services, at the same level of quality, but at a lower cost.
When the two come together though you can benefit from the skills and the productivity combined with lower costs and specialised skills as well. Which is what Ezy VA is all about. While outsourcing on its own means that the activity is performed by non-employees, when you include offshoring into the mix, you then get employees of the business entity to run the activity. And that means efficiency. Make sure to understand the differences and asses what option is better for you. If you want to understand more on what offshore outsourcing companies can do for you, have a read here.
In the meantime, keep up the good work!
Originally published at Ezy VA Blog — The Difference Between Offshoring & Outsourcing.
