3 Types of Outsourcing Companies You Didn't Know Existed
Outsourcing and business have been closely tied together for decades, but only in the last few years has offshore outsourcing started to come into play as more and more companies begin to outsource more and more of their work overseas.
So what are the differences between offshore, onshore, and mid-shore outsourcing? Which one is right for your company? And why should you outsource at all? Keep reading to find out!
1) Offshore Outsourcing
- Offshore outsourcing is when a company contracts with another country to provide services or manufacture products.
- The most common type of offshore outsourcing is software outsourcing, which is when a company contracts with another country to develop software.
- Usually, the company that outsources its software development does so because it can get the work done for less money than if it were to do the work itself.
- Onshore outsourcing is when a company outsources its work to another company within the same country.
- The two companies may be in different states or even cities, but they are both within the same borders.
- Onshore outsourcing is often used to save money on labor costs, as the cost of living and wages in other countries can be much lower than in the United States.
- However, there can be some downsides to onshore outsourcing, as it can often be more expensive to ship products back and forth between the two companies, and there may be language barriers.
3) Mid-Shore Outsourcing
- Mid-shore outsourcing is a type of outsourcing that falls in between offshore and onshore outsourcing.
- Mid-shore companies are usually based in countries that are near the company that is outsourcing its work.
- This type of outsourcing is often used for software development or other IT services.
- The main advantage of mid-shore outsourcing is that it can provide high-quality services at a lower cost than onshore outsourcing.
- However, the main disadvantage is that there can be communication difficulties due to the time difference between the two countries.