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Outsourcing

Outsourcing

Products and/or services about offshoring

 

Outsourcing and offshoring sometimes gets a bad wrap. However, both are a vital way of doing business in today’s global economy. Some think they are the same thing, when in fact, they are not exactly the same. Outsourcing does not always mean sending a task or a job out of the country, where offshoring means exactly that - the job is sent offshore to another country. What could be the reason to send jobs away when there are plenty of unemployed individuals in one’s own country? This is one of the most asked questions about outsourcing.

Why Outsource?

There are many reasons businesses outsource. One of the main reasons is for the cost. A company might outsource in order to pass along the saving to its customers, or just to increase their profitability. Another reason may be due to the lack of skilled labor or a lack of knowledge by anyone internally. For example, there may be a need to find someone who can make a part on a specialized machine and it would not be cost effective to purchase the machine than employ and train someone to operate it. Instead, they hire an outside source to complete this task, saving money and having someone skilled to do it.

Why Offshore?

Offshoring is done for the same reasons as above, but the cost effectiveness is usually even greater. In addition, many times the service or product is completed faster as well.

 

Both have their place in our economy, and many businesses would not be able to operate with profits if there were no options to outsourcing or offshoring. They can save consumers greatly and allow a business ot offer new and innovative products and services without having the overhead of expensive labor or equipment. 


 

 

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