Outsourcing & Off Shoring
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In this one page paper I will be comparing and contrasting in outsourcing and off shoring. Identify two companies that outsource certain tasks. What is this reason that each of these companies outsource? Explain one situation in which you have personally experienced outsourcing. Was it a positive or negative experience? Explain.
Outsourcing & Off shoring
Outsourcing and off shoring are two different concepts that can co-exist. “Outsourcing” is where a company contracts with a third party to do some of the company’s work on their behalf. The outsourcer may do the work within the same country or it may take to another country (i.e. off shored); opposite would be “in-sourcing” (i.e. doing the work within the company). “Off shoring” is where you will take a function out of your country of residence to be performed there generally at a lower cost; it may be kept internal within the same company group or it could be external contracted to a third party (i.e. out sourced) opposite would be “on-shoring” keeping within the same country.
An example of outsourcing is where a bank may give a large IT company in that country the responsibility for managing its network and IT infrastructure. The IT company, then procure people to do that as part of the contract. With off shoring would be where the bank in country 1 (UK) would use its subsidiary in country and another could be 2 (South Africa) or any country who perform the work. Another example could be where the IT Company, would use personnel in country 2, to perform the work in which case it is out sourced and off-shored. A negative experience that I had to face was when I received my time-log for review and I had to make sure it was accurate, so any “off time” I had to add and for all non-work time I should remove or be fired.