Offshoring is the hiring of staff in a foreign country to perform a business process, where you maintain day-to-day managerial control. So they are in effect your employees, working out of a “branch office".
Offshoring versus outsourcing
It is important to note the difference between Outsourcing and Offshoring:
- Outsourcing. With "outsourcing" you sign a contract with another company to deliver a fixed business outcome on an arms length basis. It's up to them how they deliver it and whom they employ. You have no managerial control and constant supplier tension over what is in-scope/out-of-scope and at what price.
- Offshoring. With "offshoring" you define the skills & experience, review CVs, choose the people to hire, they work dedicated to your business, you set daily tasks and manage delivery of outcomes. They are your staff. You have full managerial control.
what we recommend
We recommend Offshoring over Outsourcing. You have much greater control and flexibility to meet your changing business circumstances. The result: higher quality outcomes and a higher probability of long-term success.
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