The vision of how organizations and businesses are evolving mirrors the current rend across the entire business process outsourcing market. Offshoring is actually a concept in which a company transfers a part its function to another firm located overseas.
Very mature organizations continue to transfer most of their tactical and operation procurement activities to a lower cost delivery center with all the corresponding policy, governance and workflows embedded already, adhered and accepted across the business. Nevertheless, there are still companies that are hesitant and even wary of the method of offshore outsourcing, particularly with the emergence of cloud computing. So, how does one determine if the process is the right solution? Keep in mind that offshoring is not for every company, so it should be weighed carefully as well as several considerations to think about.
The main reason why firms prefer offshoring is because there are less few organizations that have more accessible resources compared to the resources that exist in one’s own country. Usually, this is done to achieve a competitive edge. Outsourcing offshore is also beneficial since due to the fact that there are so many service providers and vendors offering services at affordable rates.
The different kinds of offshoring include knowledge process outsourcing, software R&D, information technology and business method sourcing. For a particular task to be eligible for the offshore process, it should have the following parameters:
- It should have high information content
- The task involves repetition of skills
- Involves work which could be set up easily
- The task could be transferred on the web
- Could involve work on the telephone
Businesses and organizations are finding it more convenient and cost-efficient to tap into the diverse pool of talent of highly skilled professionals abroad to do different areas of business such as IT, telemarketing, accounting, customer service, market research, development and even animation.
The process combines the benefits of simply outsourcing, such as access to more specialized skills. Naturally, the cost is lower and ensures higher productivity. Transferring tasks to an offshore setting has been the fastest growing segment of the market. This is particularly true in the information technology services, with India as the leader in that space. BPO is another area of offshoring that has grown in an amazing pace.
Beyond the costs, offshore sourcing could be used to accomplish tasks that the company may not be equipped to take care in-house. Call centers are a popular service that is often outsourced to other countries. Choosing the right vendor for a long term relationship is paramount. By and large, the offshoring process depends on the relationship that is established between the customer and the offshore vendor. A common practice of companies looking to outsource would be to depend on the prime factor, which is location. After careful consideration of the matter, a business or company could choose to transfer a certain task of tasks to other shores, depending on the needs. Moreover, it could also opt to outsource to a service provider located just within one’s locality or country. It all boils down to the goals and objectives of the firm.