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Outsourcing and offshoring: the pros and the cons

outsourcing-and-offshoring

When work is offshored, whether to India, China, Russia, etc, one key question that the end-user organisation needs to resolve is how to staff the operation. Offshore staffing issues are prevalent, whether the firm offshores to a captive operation or to a third party supplier. To maintain and improve the level of service, it is crucial that the highest quality of staff be found.

This is true of work offshored to a captive supplier, where the user organisation needs to decide how to find the high quality of staff needed to complete the project; and also when work is offshored to a third party supplier. In the latter case, the recruitment decision lies with the third party; therefore finding a supplier who can be trusted to find the right staff is absolutely essential.

Clearing the confusion that fogs the outsourcing market is probably the first step. Outsourcing, by definition, refers to a process where an end-user engages the services of an outsourcing supplier to conduct one or more of its business processes. This could be anything from marketing to cleaning or IT. Outsourcing has been part of the business landscape for as long as business has been conducted, for companies have always formed partnerships with other firms.

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