Outsourcing & Offshoring Industry Recruitment

Outsourcing vs Offshoring vs Offshore Insourcing :

Outsourcing

The transfer of certain value contributing process, activity or services which is transferred to an external party who has the competence to deliver successfully. This decision to buy or make from another organization that was previously done inhouse is the best way to describe outsourcing.

Offshoring

Offshoring is the relocation of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting. Offshoring is when a company sends in-house jobs to be performed in another country. An example of offshoring is for a United States based company to produce their goods in Mexico. Offshoring is the relocation of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting.

Offshore Insourcing

Offshore insourcing (also referred to as captive supplier) refers to contracting with a wholly owned subsidiary located in a foreign country to provide business functions which the organization might otherwise have performed inhouse. It may provide services solely to its owner or may also provide services to other customers. An alternative to offshore outsourcing that is gaining popularity is offshore insourcing or "do-it-yourself." An increasing number of U.S. companies are creating their own subsidiary or entity offshore to get the benefits of the offshore model.