Due to the widespread
availability of the internet, offshore outsourcing had become a trend because
of the companies' advantage when it comes to results and lower cost in
processes. There are already a lot of local businesses both small and large
that are opted for several boons.
Advantages
Lower wages and production cost.
Because of the different wage quotas in countries, businesses in wealthier
nations have opted to offshore their services to cut expenses.
Availability of skills
More so to the lowered processing
cost are the skills that a country has an advantage in. Say for example, Asian
countries with a large English speaking population are preferred to be employed
as call center representatives both in sales and troubleshooting.
Capability
It happens when a company does
not have the in-house expertise in order to complete a project. And so, the
task will have to be outsourced.
Offshore Services
These are the common services
employed in offshore outsourcing:
ITO or Information Technology Outsourcing
This type of offshore services relates
to computers and other Internet related work such as server maintenance and
network troubleshooting. Programmers are in this field as well.
BPO or Business Process Outsourcing
In reference to ITO, this does
not requires much technical skills as they can be acquired after short periods
of training. Telecommunications company and other products that needs
troubleshooting. But first and foremost; clear and comprehensive English communication
skills is needed.
Software R&D or software development
App providers and other important
applications are streamed offshore services, which includes
research and development, because processes such as these may cost a lot.
Although it is new compared to ITO and BPO, it is ideal when there are higher
development costs at hand.
KPO or Knowledge Process Outsourcing
This includes all kinds of
information gathering and research such as intellectual property research for
patent applications; equity research, business and market research, legal and
medical services, etc.
In order to maintain a steady
growth in business when it comes to offshoring, there must a constant line of
communication and a mutual understanding of the processes between parties. Offshoreservices spans from free lancers, small business to large business. The
risk in hiring offshore services is when processes are not being tracked and
deadlines are not met.
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