Offshoring Vs. Outsourcing
How Does Offshoring Differ from Outsourcing?
The increase in globalization, the weak economy of the past few years, and the “flattening” of the world has led to a spike in demand for offshore outsourcing. High-speed internet connections have made it possible for outsourcing to be carried out anywhere in the world. While outsourcing involves transferring a business function to an external company, offshoring is transferring those services to another country. Outsourcing is an arrangement in which one company provides business services for another company that would otherwise be handled internally. Outsourcing and offshoring are often practiced in tandem. Generally, domestic companies interested in offshore outsourcing are not only trying to save money, but are also looking to improve their services and efficiency.
Hit Rate Solutions is an offshore outsourcing company. Our call centers and BPO facilities are exclusively located in the Philippines. We proudly help companies around the world save money and increase productivity.
What Does Offshore Outsourcing Entail?
Offshore outsourcing is usually broken down into the following segments:
Business Process Outsourcing
The BPO category involves business process outsourcing, which can include call center management and claims processing. BPO usually is typically broken down into back office outsourcing and front office outsourcing. Back office outsourcing includes finance, accounting, and human resources, while front office BPO includes call center services such as customer support, lead generation, and telemarketing outsourcing.
Information Technology Outsourcing
Offshore outsourcing includes Information Technology Outsourcing, or ITO. Offshore ITO is the exporting of IT-related work from the US and other developed nations, to countries like the Philippines and India, where there is both political stability and inexpensive labor and tax savings.
Knowlege Process Outsourcing
KPO, or Knowledge Process Outsourcing, typically involves processes that require a high level of skill or expertise. This can include the outsourcing of medical services such as interpreting x-rays, or legal services like e-discovery and document tagging.
How Can Outsourcing Help My Company?
Outsourcing some of your company’s business functions can help you in several ways. Offshoring can allow your business to add staff on-demand and at a low cost. Depending upon the functionality you wish to outsource, adding virtual employees can help you boost productivity, lower the cost of sales, and improve customer service and retention.