Abstract
Offshore outsourcing is a concept when a company transfers a portion of a company's business function to another company situated overseas (not in ones country). The salient features of offshore outsourcing are mentioned hereunder.Offshore outsourcing means that a particular company is outsourcing its business function to another company, which is not located in ones own country. For example, if a company A (situated in United States of America) out sources its business function to another company not situated in USA but is located in some other country is referred to as Offshore outsourcing.
Reasons for opting for offshore outsourcing:
The main reason why companies prefer offshore outsourcing because there are few companies, which have more accessible resources as compared to the resources existing in ones own country. This is usually done to achieve competitive advantage.Offshore outsourcing is also beneficial because there are many companies, who offer services for cheap. This is particularly true for the developed nations who employ the services of the workers of the developing nations.
Factors, which make impact offshore outsourcing:
The following factors impact a country's decision to opt for offshore outsourcing. They are:Types of offshore outsourcing:
Generally, the following 4 types of offshore outsourcing are recognized. They are:In order that a particular task may be eligible for offshore outsourcing, the job has to have the following parameters.
