Offshoring and Outsourcing: Know the Difference
Outsourcing and offshoring are two terms that I am sure every businessman is aware of whether you outsource any function of your business or not. Most of the times, these two terms are interchanged in conversation or even confused by some to think they are one and the same. However, there are some fundamental differences between the two. In this blog post, we shall explore these differences and get a clear sense of what both these terms actually mean for a business. Outsourcing In simple terms, outsourcing refers to the act of contracting a third party company to carry out certain functions of your business. Outsourcing can be done for the sake of reducing operating costs as outsourcing is more cost effective than hiring an in-house team. Another reason why companies outsource services is to avail expert or specialized skills that their own team does not possess. Here are some benefits of outsourcing for businesses – Cost-effective As stated above, outsourcing provides