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Where to Outsource your IT Processes

by: Sarah Joson

Tuesday, May 22, 2012 | Outsourcing News |

GrowBiz Media CEO Rieva Lesonsky shares her own experiences about outsourcing business processes locally and internationally at ReadWriteWeb.com. Her article highlights the benefits and drawbacks of each and aims to demystify one of the crucial factors of an operation - the location of the service provider.

Benefits and drawbacks of outsourcing business processes

Offshore outsourcing
One of the known locations for offshore outsourcing is Southeast Asia, a region where majority of employees working for business process outsourcing (BPO) companies work during night time. The upside of this is work assigned to the offshore team can be done while you sleep.

However, since you are in different time zones, it would mean that you would have to spend more to hire someone who will manage your offshore operation. Language barrier and cultural differences can also make offshore outsourcing more difficult.

Outsourcing nationally
This is making a comeback as more and more Western companies, particularly in the United States, are unhappy with the results of their international outsourcing efforts, which is even amplified by the US government’s aspiration to bring jobs back home.

This year, nearsourcing or ruralsourcing is said to be one of the top trends, according to industry body International Association of Outsourcing Professionals (IAOP). In fact, Georgia, North Carolina, and Arkansas are now recognized to have a supply of skilled tech workers who get relatively lower salaries compared to those living in other states.
Language barriers are minimal (or non-existent) and communication amongst the client and provider is easier. The time zone may be different but it can be easily managed.

The downside, she says, is that some of the service providers they have encountered are the ones who make use of offshore outsourcing.

Outsourcing Locally

When it comes to outsourcing processes locally, communication is very easy, which will be a plus for small businesses and start-ups. Information is easier to disseminate and corrections can be worked on immediately. If the occasion calls for it, they can meet face-to-face without having to schedule a flight or drive for several hours. Another advantage is that you can easily absorb your trusted contractors should you decide to hire fulltime employees.

The downside is still the cost because the provider will probably follow the going local rate.

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