A lot of people still can’t tell the difference between offshoring and outsourcing. They think the two are one and the same with the idea being everything not done in-house is already offshoring, and is a reason for the locals to lose jobs.
However, the outsourcing industry has matured over the past decade. In fact, an article posted at Business2Community.com
shares a study done by IAOP. Finding a less expensive solution to a problem is a thing of the past and that businesses are now more driven by other high-value factors such as the quality of work and client-provider relationships.
The IAOP report stated that nearly 80 percent of today’s outsourcing customers have been applying the process for over 20 years and that they are looking for more than just saving on operational and labor costs.
Outsourcing has become such a commodity that it has gone through great modifications and improvements that helped drive the economies of emerging outsourcing hubs. It’s now easier to contact a service provider for a certain process and be billed accordingly, than finding a full-time employee to finish a task.
Outsourcing has been divided across several segments and price points. Some of the factors are the availability of talent, complexity of work to be done, and what other verticals will be involved.
Other things that clients consider when outsourcing are:Modernization
– The ability to innovate and keep up with the latest trends in the industry is a huge factor for clients. If they are left behind, they will lose the chance to beat competitors and stay in the game.Flexibility of operations
– They want to have the ability to adapt to sudden changes.
Have access to skilled talent pool
– In relation to the previous factor, clients need to address the demand in the workforce and adjust the size of an operation accordingly.
Other reasons that prove that offshoring is no longer about cost savings include the fact that not all offshoring hubs are affordable. Offshore outsourcing
hubs differ in costs. Challenges on who will control the operation is also a concern, as well as the effectiveness and promptness of the supplier.