There is a common misconception that outsourcing and offshoring mean the same thing. However, there are some important differences between these two methods of working that can influence how you want to manage external workforces. Here we explain more about the difference between outsourcing and offshoring so you can make the right decision for your business.
Outsourcing involves work being sent to staff who are not employed directly by your company, which means it could be completed by freelancers that invoice you, or more commonly, through an agency who will complete the task using their own staff. The company outsourcing the project will set the brief and overall requirements, which will then be managed by the third party until completion. It’s a service we provide at Teamin, which can also include the recruitment process.
An outsourcing arrangement is focused more on your relationship with the provider than it is with the workers themselves. The provider will be responsible for delivering to the set criteria of the project, which makes it much easier to communicate with one entity instead of managing multiple individual workers.
Offshoring works in a slightly different way to outsourcing. By using an offshore service provider, you can directly outsource specific parts of your business to another country.
Once the service provider has been hired, they will then hire staff that will serve as a dedicated remote workforce for your business. This means they effectively operate as an extension of local staff within your organisation and can also be managed in the same way. You have full control over hiring and firing and work quality expectations can be kept in line with local standards.
While working in a different time zone has its benefits it can also be disadvantageous as it can be difficult to align schedules, affecting communication and management.
Contact us today to see how we can help your business be more productive and save money with a dedicated outsourced team
Our team is ready to answer your questions and help with your business journey. Please contact us using the form here or by using one of these methods below: