Offshore Outsourcing -- September 5, 2011

Offshore outsourcing implies outsourcing your work to a person who is away from your coast.  The concept of offshore outsourcing is that the consumer and producer of the will be in two different countries. 

You can exploit the vast resources in the developed countries with the help of offshore outsourcing. This is the major reason for the attraction of organizations towards this service.

Developing countries attracts the developed countries by providing excellent services which are inexpensive. The cost of manpower, quality of the service and infrastructure forms the major factor that attracts the country as an offshore outsourcing resource site. Business environment and laws in the source location also forms a major factor in the selection criteria of the resource country. 

Offshore outsourcing includes knowledge process outsourcing (KPO), business process outsourcing (BPO), legal process outsourcing (LPO), offshore software outsourcing etc.  Outsourcing to the developing countries like India, Nepal and China are found to be beneficial to the industries all over the world.  Lack of capital to set up the infrastructure forms the major reason for the developing countries to sign for the outsourcing process. Developing countries have enough human resource but lack capital.

 The offshore organizations hire their own professional and man resources to the outsource provider.  The offshore outsourcing also helps in laying the organization roots in the foreign countries.

 The offshore outsourcing increases the competitive spirit among the business organizations. This also increases the profit of the organization by inputting a less resource. The organizations that provide the service are known as the clients and the one who accept the service is known as the vendors or service providers.
Large numbers of organizations are now coming forward for offshore outsourcing to increase the organizational advantage. Every firm irrespective of their size takes on various business activities to reach in the committed target. Business firm cease the process when the output they receive from the service is not satisfactory. They may also sometimes contact with other entities. 

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2 comments:

  1. It's very common nowadays for business owners to outsource their business IT services to specialized companies in order to benefit of different advantages, such as cutting costs or saving time. It has become a way for small and medium businesses to increase their profitability. Whether it's onshore or offshore outsourcing, it's generally a good solution leaving it to the professionals and just sit back and see your company grow. Because there are very good outsourcing destinations, like India or Eastern Europe, where you can benefit of great services.

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  2. @Joseph.Yes, it is true that small to medium law firms do out source work for cutting costs or saving time. But these are not just the benefits, what outsourcing also does is better utilization of their valued time. For example, a partner of a small or medium law firm can concentrate on spending more time with clients then may be spending one hour of actually undertaking legal research on a particular issue. Lawyers normally charge their clients even for the time spent with them. If they could divide their client's expenditure by giving them more individual time and also getting the work done at lower costs, its a double whammy! Making the law firm and client happy.

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