Revisiting the 10 Offshore Outsourcing Terms

Revisiting the 10 Offshore Outsourcing Terms

Daven Michaels

Daven Michaels

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

The call center outsourcing business is popular. As a matter of fact, so many people now know the many advantages of offshore outsourcing and are making serious plans to explore it. But before you start running around hiring service providers, you should understand the jargons used in the “offshore outsourcing” business. Though quite a bit complicated, these are words you will understand quite quickly.

It is important that you know the most commonly used terms in the offshore outsourcing industry. I have taken the liberty to list out 10 commonly used words in call center outsourcing:

1. Domestic or Onshore Outsourcing

Simply put, when you hire an outsourcing company that is located in the same country as you, you just outsourced domestically. Domestic or onshore outsourcing is when an organization’s business process outsourcing requirements are being met by another company located in the same nation. When compared to other call center outsourcing solutions, domestic or onshore outsourcing is more costly; especially when it comes to taxes, labor costs and other business related areas.

2. Near Shore Outsourcing

This term is used when an organization is outsourcing some of its work activities to a neighbouring nation.

3. Globalization

Yeah…this is also a term in outsourcing. “Globalization” is a term that gained recognition with the advent of the internet. It refers to certain types of products, service, and business that have no standardized boundaries of countries, time, or language.

4. Crowd Sourcing

Imagine the possibility of announcing your task to the world and letting hundreds of qualified experts struggle to outbid the other to serve you! This process involves inviting interested workers through an online “open call” i.e. Bidding platforms.

5. Offshore Outsourcing

Offshore outsourcing is a situation where work/tasks is being outsourced to a destination or destinations where the manpower and labor expenses are relatively more affordable than near shore or onshore destinations. As an authority on offshore outsourcing, I can tell you for a fact that more and more businesses (both small and large) are taking advantage of the offshore outsourcing.

6. TCO

TCO simply means Total Cost of Ownership/Total Cost of Outsourcing from the labor costs to service fees, and from the implementation and managing of fees that call center service providers have to bear for a client’s project.

7. SLA

Service Level Agreement (SLA) is an agreement that includes the terms & conditions, charges and services which call center service providers and their clients are to agree upon.

8. Virtual Call Center

Virtual call centers are call centers where all agents are situated in various locations around the world but perform their tasks as a team for an organization.

9. BPO

Business Process Outsourcing (commonly called BPO) is simply a fancy word for call center. Though, BPO can also used in a pretty wide perspective as it is divided into two groups:

  • Front office outsourcing
  • Back office outsourcing

10. E-Outsourcing

E-outsourcing is when an organization purchases much needed information technology (IT) services and or products via the internet as an alternative to deploying its in-house source to satisfy this IT requirement.

Understanding these jargons will make it easier for you when transacting with outsourcing companies.

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 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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