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Published byMatthew Palmer Modified over 8 years ago
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External and Internal resources Insourcing Outsourcing Offshoring
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Why is it possible Low cost fast communication Ease of international travel Newly developing economies with low costs
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Why outsource Get access to more experienced people Cut fixed costs Focus on your core business
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Outsourcing vs Offshoring Outsourcing Offshoring
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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
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Why offshore Same benefits as outsourcing Time zone advantages Lower costs But TANSTFL – ( There Ain’t No Such Thing as a Free Lunch)
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India English is the language of business Huge pool of available talent Lower costs/Good communications
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Examples of offshoring Software Development Medical transcription Call Centres/Technical support
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Problems with Offshoring A 8,000k relationship is not easy Language/Accent can be an issue Culture can be an issue
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Mitigating problems Don’t be a cheapskate Exchange some staff Technology/VOIP Chat etc
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In summary Call centres, Transcription, Software Dev You might save money People on demand Cultural and Language problems You might loose control …
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