Offshore Outsourcing

Lot of people get confused between Offshore Outsourcing and Outsourcing. Let us go through these words briefly.

Outsourcing is an agreement by a person with external party to transfer some of the inhouse activities to external party. Whereas Offshore Outsourcing is the practice of hiring an external organization to perform some or all business functions in a country other than the one where the product will be sold or consumed.

Outsourcing is not a new phenomena, it is the offshore outsourcing which is new and which has been a topic of controversy. Offshore outsourcing to countries like India results in reducing cost of a company nearby 50%, thus more and more companies in west especially US and UK are outsourcing their activities to countries like India and china.

Cheap labor and low infrastructure cost is the major reason for offshore outsourcing. At the start only low end jobs like Call Center were being outsourced to offshore but the trend of offshore outsourcing has caught up with the high end jobs thus raising a hue and cry from the home countries as the jobs were moving out of their countries resulting in unemployment. Also concerns are existing regarding quality of the services. On other hand the low cost countries which are receiving these works are booming. In India many top US corporations have setup their own offshore development center thus providing a employment to many people in India, more and more corporations are running towards India and China.

What do you say, is Offshore Outsourcing is a win win situation to both country's economy. Looking forward for your comments bye.