| When I was in the telecom industry, the term "death | | | | companies to manage these critical processes. |
| by acronym" was a common chuckle around the | | | | Offshoring - This is when an entity sends a task to |
| office. Business verbiage regarding outsourcing is no | | | | contractors in another country, usually with cost |
| different and can get a little confusing, especially if you | | | | savings at the core. U.S. clothing manufacturers are |
| are writing an RFP (oops, another acronym, Request | | | | known for manufacturing in China and Mexico. U.S. |
| For Proposal). If you cannot clearly state what you | | | | computer companies offshore their technical support |
| need, how can you attract the talent you need that will | | | | and customer service, often to the dismay of |
| deliver results? A common slew of terms is | | | | customers. At what point is the cost savings worth |
| outsourcing, insourcing and offshoring. They tend to get | | | | angry customers who cannot understand the person |
| used interchangeably and can significantly change the | | | | they're told to call? It's bad enough they are having |
| interpretation. Let me try and shed some light on the | | | | trouble with the product. |
| common definitions and where things can still venture | | | | Weigh the Gains and Pains - Each of these business |
| into the gray. | | | | models has it's place, but you must weigh the balance |
| Outsourcing - Although this seems crystal clear it can | | | | of cost savings, quality and control. I outsource a |
| be interpreted differently by industries. The general | | | | considerable amount myself, but all domestically. It just |
| term means to contract out a task to a third-party. | | | | makes more sense in marketing to have professionals |
| Over the past decade, India emerged as a highly | | | | who consume within the US market to be working on |
| competitive player in outsourcing. It became necessary | | | | US campaigns. If you are in an industry where price |
| for major corporations to outsource to stay | | | | wars are common, you don't need these models you |
| competitive. However, this caused unforeseen | | | | need to re-position. It is worth some personal sole |
| backlash in morale and customer service. These | | | | searching on how comfortable you can be handing |
| issues opened up opportunity for domestic companies | | | | over an important function. I recommend starting with |
| to offer high quality outsourcing. Unfortunately, the | | | | smaller, non-critical tasks. |
| public assumes outsourcing means jobs going | | | | There are always some areas of your business that |
| overseas when the contractor could be in the same | | | | could gain through outsourcing. Gaining back the time |
| town. | | | | you took worrying about that segment of your |
| Insourcing - Often done to control certain production | | | | business that is now in the hands of a specialist is one |
| aspects, companies contract in to assure the quality is | | | | great reward. Staying focused on growth instead of |
| maintained by an internal but stand-alone entity. An | | | | production is probably the best reason that companies |
| example would be a softdrink producer building it's own | | | | who outsource thrive. If any aspect of your marketing: |
| plant to make the bottles their product is delivered in to | | | | website, social media, SEO, branding, etc. is not where |
| maintain costs and quality control. This became popular | | | | you want it schedule a call with me. There may be an |
| following the early hiccups of international outsourcing. | | | | outsourced solution to help your company thrive. |
| Companies reined in control and created tax-beneficial | | | | |