Business Development

I attended a meeting last month about the topic of outsourcing. Before it started, I asked the woman leading it if she was going to talk about offshoring which is a type of outsourcing. She said she was going to treat them as the same thing. That conversation led me to think probably a lot of people think the same way. In this article I’m going to discuss the definitions and differences between outsourcing and offshoring.

Outsourcing is the business process of hiring outside of a company for specific jobs instead of hiring internally a full or part-time employee. A small company might outsource computer support services because they can’t justify hiring a full-time person due to economic reasons or they don’t have enough work for them to do. By outsourcing the job to someone who specifically does part-time projects a company can save money, office space and other resources.
The business trend of shedding jobs at companies is actually creating more demand for outsourcing because of the cost benefits.  In the past processes like computer support or accounting were outsourced.  Now just about any function in a company can be outsourced.  For example, MarketStar supplies outsourced sales and marketing services to companies.  That’s not a function one would normally turn over to someone else.  For MarketStar and their clients it works.

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