Outsourcing Projects

Outsourcing is a practice in which an individual or company performs tasks, provides services for another Companies/Clients -- functions that could have been or is usually done in-house. Outsourcing is typically used by companies to save costs.

The most logical classification of outsourcing companies is based on location. For now we would like to clarify the three main types of outsourcing:

Local Outsourcing Offshore Outsourcing Nearshore Outsourcing

Local Outsourcing

Domestic software outsourcing has many advantages over other types of outsourcing: local teams are easily accessible, they speak the same language, they live in the same time zone, they have the same mentality as you do, you can control what they are doing and how they are doing it, plus they are not too far away should any problems arise. This is all very promising and reassuring. You quickly put together a list of local outsourcing companies that can help you, then you check their prices and… suddenly, disappointment sets in.

Offshore Outsourcing

Offshore outsourcing, a type of business process outsourcing (BPO), is the exporting of IT-related work from the United States and other developed countries to areas of the world where there is both political stability and lower labour costs or tax savings. Outsourcing is an arrangement in which one company provides services for another company that could also be or usually have been provided in-house. Offshore simply means "any country other than your own." The Internet and high-speed Internet connections make it possible for outsourcing to be carried out anywhere in the world, a business trend economists call globalization. In general, domestic companies interested in offshore outsourcing are not only trying to save money in order to be more price-competitive against each other, but also to enable them to compete with businesses in other countries.

Nearshore Outsourcing

Near-shore outsourcing is a business model that uses an external but local company for one or more internal business processes and services. Onshore outsourcing enables an organization to use a local company for IT and IT enabled products, services, operations and support. This helps companies to reduce internal IT infrastructure and support staff while meeting any legal or operational requirements that may apply. Near-shore outsourcing is also known as domestic outsourcing or On-shore outsourcing.

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