Outsourcing Solutions: What Are The Different Types?

Outsourcing Solutions: What Are The Different Types?

Picture of Daven Michaels

Daven Michaels

New York Times Bestselling Author, 30-year business veteran, and Executive Chairman of CurrentC Group.

Outsourcing has evolved to become the in-thing in today’s business and corporate environment. More companies and businesses are joining the bandwagon of outsourcers, which in turn provides them with benefits such as significant cost saving, shared business risks, access to top-quality services and manpower, and significant time-saving. Thanks to the Inspiration behind the internet and technology, outsourcing is no longer something accessible by only the big companies but can also be leveraged by SMEs. There are different types of outsourcing solutions available to businesses.

So, Why Outsource?

As mentioned earlier, the numerous and extensive benefits accruing from outsourcing is the major lure and attraction to this innovative way of running a business or company. Low-cost labor is the number one reason for outsourcing. Also, through outsourcing, a business can leverage the expertise that does not exist in-house, especially the small-medium businesses that may not afford such expertise on a full-time basis. Additionally, when a company outsources some of its business processes, the employees are able to pay closer attention to the core values which are the real essence and existence of a business.

A business can also save time and lunch its product faster than its competitors by resorting to outsourcing. The benefits are obviously enormous. However, there are few drawbacks such as the challenge of language skills, especially when the call center is involved and if the task is outsourced offshore. However, such drawbacks can be eliminated by employing a strict and rigorous assessment process to ensure only the most suitable outsourcing vendor is selected for the task.

What Are the Different Types of Outsourcing Solutions?

There are different types of outsourcing solutions to suit each business’s outsourcing need. Here are some of the outsourcing options or solutions available for businesses of various kinds and sizes;

Offshore Outsourcing Solution

Offshore outsourcing involves outsourcing business functions or processes to providers outside of the country or region where the business is located. For instance, if a business or company in the United States outsources its information technology administration to an IT outsourcing firm or provider in the Philippines, it is called offshore outsourcing. Increased cost saving is the major reason for offshore outsourcing. Also, a good number of offshore providers are experts in their respective areas of specialization.

Onshore Outsourcing Solution

As the name suggests, when a company or business outsources certain business functions such as marketing or helpdesk to an outsourcing provider within the same country or region where the business is located, this is known as on-shore outsourcing. There’s also cost-saving (but not as much as you will save with the offshore option) with on-shore outsourcing, plus the rationality of providing jobs for people in one’s country or region. Also, a company enjoys excellent language skills when it uses outsourcing providers within its country or region of operation, especially for business tasks such as call centers.

Other outsourcing solutions include work-at-home outsourcing providers who work right from their homes, unlike outsourcing providers that have separate offices. They are actually known as independent contractors or freelancers. You can also find BPO (Business Process Outsourcing) solutions in human resources, accounting, administration, and other aspects.

Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.

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