Outsource Vs Offshore? This is one of the biggest tech debates of our time. Businesses often struggle between whether they should outsource or offshore in order to remain competitive in today’s business world. The truth of the matter is that both options have pros and cons to consider depending on your own business needs and budget constraints.
As most startups or new enterprises develop, they usually find themselves at the brink of needing more bandwidth for their online business. At this point, businesses are often left to make an important decision: how they intend on proceeding, ie: outsourcing vs offshore. Naturally, outsourcing tends to be cheaper, and thus appealing. However, one must weigh the costs against the benefits before making a final decision on which to choose. Here’s a closer look at both options.
Offshore IT is very viable for large companies looking to outsource certain functions. They can access skilled engineers, talent, and technology from abroad. Additionally, offshore vendors can provide their services as quickly as possible, which can be crucial when you need to get work done quickly. However, there is a downside to outsourcing. You run the risk of exposing your intellectual property (IP) to foreign competitors.
Outsourcing requires a certain level of skill and expertise. This means that you will not be able to outsource to just anyone, and even if you could it would take them some time to figure out the process. Moreover, this type of outsourcing will require you to hire and train the people who will be doing the work, and may also require you to provide them with office space and other perks. While the majority of outsourced work can be performed quickly and easily, you will not be able to do as much unique or proprietary development, and will have to pay additional fees for security and support.
A lot of people prefer to outsource work to other countries because it allows them access to a better quality of life. However, the drawback of outsourcing is the cost of shipping and transporting materials between locations. While an American business may be able to charge twice as much as a Japanese company for the same task, an Asian business will not be able to because of the higher cost of living in Japan. Many offshore companies will offer free shipments and shipping to make their services more appealing to potential customers, but you will have to pay for the extra cost.
Another disadvantage of outsourcing is the lack of personalized touch. Because you will be dealing with just one provider, you are limited to using their basic applications. When you outsource vs offshore, you will have access to a wide variety of different software programs and programming interfaces, allowing you to customize and tailor your program to the needs of each job. Furthermore, since you will be communicating via phone and email, the level of communication between you and the service provider will be higher than in an offshore arrangement. Since you will be spending more time with your provider, it may mean that your final product is more polished. Ultimately, you will end up spending more money to keep your outsourcing vs offshore relationship running at full steam.
One final disadvantage of outsourcing is the difficulty of getting a contract set up between the outsourcing company and the client. Often, when you outsource vs offshore, both companies are trying to establish a contract so that nothing is left to chance. However, this is not always the case, since many companies will try to get a quick contract signed as soon as possible so that they can move on to other projects. This can be frustrating for both companies, since the client may be waiting for their outsourcing to begin while the outsourcing company is busy working on another job. If you do not plan on sticking with the same company for all of your outsourcing needs, this could prove to be a problem.
Overall, there are some disadvantages of outsourcing that should be considered. The fact that you might have to pay a little more to keep your outsourced working from home may be a problem for some clients. Additionally, if you plan on staying with the same company, you might find that there is a delay in getting a contract started because of the inherent differences between both parties. But overall, this type of arrangement between a provider and a client can prove very beneficial. As long as you keep these disadvantages in mind, you should be able to decide whether or not outsourcing vs offshore is right for you.