Overseas Sourcing As Strategic Business Solution

| Total Words: 575

Offshoring and outsourcing are the terms often misinterpreted to have the same meaning. But there is a slight demarcation between the two The shifting of production, manufacturing or services to another country that offers better competitive advantages such as lower costs and fewer regulations is called Offshoring. The complete transfer of business is involved in Offshoring where the head office is present at the onshore region, but the offshore base is the production and development site. Outsourcing on the other hand is the transfer of only a part of the business process to a cost- effective and efficient site. The core process is performed by the mother company whereas the non-core jobs are done by the service provider on the other side of the globe. Business Services are sorted into components and each component is dealt with efficient and cost-effective measures. The practice of outsourcing was prevalent from the 80s, but the quest for cost-effective and quality work increased offshore software outsourcing in the 21st century. The boom in IT enabled services and the influx of MNCs spreading their web for outsourcing business processes from Banglore, Gurgaon, Chandigarh...

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