External and Internal resources Insourcing Outsourcing Offshoring
Why is it possible Low cost fast communication Ease of international travel Newly developing economies with low costs
Why outsource Get access to more experienced people Cut fixed costs Focus on your core business
Outsourcing vs Offshoring Outsourcing Offshoring
Why outsource Much IT work is Intermittent – Installing a network is not done often – Upgrading an OS is not done often – Would you do your own dentistry? External experts will get constant practice – Consultants are expensive – But you only pay for them when you need them
Why offshore Same benefits as outsourcing Time zone advantages Lower costs But TANSTFL – ( There Ain’t No Such Thing as a Free Lunch)
India English is the language of business Huge pool of available talent Lower costs/Good communications
Examples of offshoring Software Development Medical transcription Call Centres/Technical support
Problems with Offshoring A 8,000k relationship is not easy Language/Accent can be an issue Culture can be an issue
Mitigating problems Don’t be a cheapskate Exchange some staff Technology/VOIP Chat etc
In summary Call centres, Transcription, Software Dev You might save money People on demand Cultural and Language problems You might loose control …