Businesses are often confused with the difference between Offshoring and Outsourcing. Like, “Hey! As long as I get to hire remote workers from other regions to get my work done, I can say I am offshoring. OR… outsourcing.” While both serve the same purpose, which is to purchase a product or service at a relatively cheaper cost, both are still comparable in many ways.
Here is the technical difference between Offshoring and Outsourcing:
Offshoring and Outsourcing: Definition and Comparison
Offshoring.
Refers to the ability to acquire products or services from a different country or region. This implies the re-location of a specific business in another country. For instance, the production of an android smartphone by company “X”, where company “X” opens up a factory in China–which is an extension of the company.
Company X owns both offices in China and the US. Having the procurement of raw materials and the assembling of the gadget is done in the said country, but then is imported to the US for final packaging, marketing, and selling. This is what we call offshoring.
Outsourcing.
Is alluded to the acquisition of services or goods through hiring a third party company. More of like a supplier, in a business point of view. Essentially, outsourcing workers is now becoming a trend for small and medium businesses. Particularly popular with the positions: Software Development, Virtual Assistant, Data Entry, Graphic Designer, and Bookkeeper. These positions are outsourced externally to a location with cheaper manpower costs. And by maximizing the world wide web, business owners are now taking advantage of the opportunity for cost reduction for business operations.
This here is exactly what Remote Staff offers. At Remote Staff, we provide outsourcing services, having the ability to hire remote workers from the Philippines. You get to access specialised skills needed for business specific tasks as we provide you with cost savings, actual specialization, and more flexibility for your business. When you reduce cost, and add that to specialization, and flexibility may also be a similar strength when offshoring teams, but then again, when Outsourcing, you are hiring dedicated and experienced remote workers from the Philippines through a third-party entity.
Run the numbers yourself with our FREE Outsourcing Calculator below:
Furthermore, Remote Staff not only offers outsourcing services in hiring dedicated staff but also provides an offshore office extension to foreign business clients. How? Office spaces or workstations may be rented out by foreign clients for the use of their outsourced staff. Imagine the convenience this brings to your business. And since Remote Staff manages your outsourcing, this also includes the timekeeping, payroll, compliance, and even work monitoring of short term or long term remote workers.
Can you now tell the difference between Outsourcing and Offshoring?
