| Outsourcing and offshoring are terms that are often | | | | less money and resources are spent for the same |
| confused with regards to meaning and usage. While | | | | tasks compared to what was previously done. This is |
| closely linked, their meanings are not quite the same. | | | | attributed to lower overhead costs with regard to |
| Outsourcing is the delegation of tasks and/or | | | | things such as utilities (which the outsourcing company |
| processes to an external outfit, whether an individual or | | | | is likely to shoulder rather than the client) and the task |
| another company - not necessarily a foreign one. | | | | of finding qualified people for the job. Outsourcing and |
| Offshoring is the shifting of tasks to a company in | | | | offshoring have also been easier due to the major |
| another country. In that sense, offshorers may also be | | | | advancements in communication technologies. |
| outsourcers, but not all outsourcers offshore. | | | | Monitoring progress and productivity of your |
| These two concepts are not new, and have actually | | | | outsourcers has never been this easy. |
| been around for a very long time. It has gotten quite a | | | | In some ways, outsourcing and offshoring have been |
| name for itself in the business world starting in the | | | | easier as well. Some of the companies that either |
| 1980s when the larger companies started offshoring | | | | offshore or outsource have a great global presence, |
| and outsourcing their production. It continued to rise until | | | | and finding employees willing to work for these |
| the 1990s when in declined somewhat, but the dawn | | | | companies is never a problem. The biggest ones |
| of the new century has given rise to a new generation | | | | attract the best and brightest of the lot. This may also |
| of companies that are using outsourcing and offshoring | | | | be a reason why companies who want to have a |
| as major tools in their business arsenal. You may call | | | | bigger international presence opt to offshore in order |
| the present times as the outsourcing and offshoring | | | | to find their footing. |
| age as more and more companies are becoming | | | | There are still many arguments as to the benefits of |
| aware of this practice and are opting for it. One of the | | | | outsourcing and offshoring, but no one can doubt what |
| primary reasons for adopting outsourcing and/or | | | | it brings to the companies that use this model, and the |
| offshoring is the reported rise in productivity in the | | | | growth that these companies have experienced over |
| companies that do so. In the business world, | | | | the years. Because of this, it is more than likely that |
| productivity means profit, and what sensible | | | | many other companies will try and replicate the |
| businessman will shy away from it? | | | | success of these companies and try their hand at |
| This increase in productivity attributed to both | | | | outsourcing as well. |
| offshoring and outsourcing comes from the fact that | | | | |