How To Guide For: Understanding The Difference Between Offshoring And Outsourcing And Why A Company

Offshoring refers to obtaining services or products from another country. While much offshoring involves outsourcing production to another company it can also refer to simply re-location certain aspects of a business to another country. The services and products are all still provided in the same country, but they are now in another country. Outsourcing refers to obtaining certain services or products from a third party company. While many think outsourcing refers to using a service provider in another (usually cheaper) country that is not necessarily the case. Outsourcing can be done to a company that is located anywhere. So why would a company choose offshoring and outsourcing. Lets start with offshoring. A company would choose to offshore because it would benefit the company cost wise. Also overseas the company would be able to take advantage of the tax and tariff benefits. Now lets look at why a company would choose outsourcing. A company would choose outsourcing also because it would reduce costs. Also for specialization purposes meaning that some business processes or products are very specialized and outsourcing to another provider provides access to higher quality. With outsourcing companies have the benefit of only having to pay for precisely what you need. To get more information on offshoring and outsourcing and why a company would choose to offshore and or outsource click on the pictures below to read the articles.