Outsourcing Vs Offshoring Which Is Best for You


set-up-offshore-office-india

August 10, 2020

Is offshoring the right setup for your business or outsourcing? Are you confused? Let’s give you detailed information on both which will help you in selecting best fit solution for your business. As one of the most loving outsourcing destinations in the world, India is a known hub for setting up offshore offices.

Every coin has two sides. Similarly, Outsourcing and Offshoring are also two sides of the same coin. Both of them have their own advantages and disadvantages. People used to get confused by thinking both Outsourcing and Offshoring are same. So, what is the difference between Outsourcing and Offshoring?

What is Outsourcing?

Outsourcing is nothing but a phenomenon of hiring a third party be it an individual or company on behalf of you. It benefits many businesses to grow and without any major investment, cost effective strategy can be prepared. The cost-saving measure was as popular as ever and hassle-free delivery of services has been established now with advancement of technology. One will easily get efficient, hassle free and cost-effective services through outsourcing.

Advantages of Outsourcing:

  • It helps in Time-management and cost savings.
  • Increasing efficiency along with generating more profits.
  • Increase in financial analysis of the company
  • Preparing a strategy to use the resources in efficient manner.
  • Management will get enough time to focus on the activities which provides competitive advantage.
  • Companies can access a huge pool of talented resources, best infrastructure, and the latest tools and technologies at extremely reasonable rates by outsourcing.

What is Offshoring?

Offshoring is the relocation of a business process to another country. Offshore business model means that companies can build their team from a scalable talent pool, in a different geographical location, under the same management. In recent times, offshore office setup, has become a competitive strategy for a lot of successful enterprises.

Advantages of Offshoring:

  • Helps in reducing the cost, increasing revenue and maximizing the income.
  • It is cost effective for industries related to manufacturing, production and call centres.
  • Helps in getting financial incentives and tax benefits.
  • Offshoring locations have a vast pool of skilled labour and these employees are recruited for offshoring operations.
  • Management will get enough time to plan out the strategies and execute it accordingly.
  • The risks are less which helps attain flexibility and business expansion.
  • The money saved from Offshoring can be re-invested into the business to expand and generate more local employment.

We at Doshi Outsourcing are always concerned about providing the best services to our valuable clients. It is our utmost priority. We are here to serve our clients in better ways and make sure to deliver the best possible services to our clients. Call us now or email us if you have any queries. We will provide the best fit solution for your business.