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IT Outsourcing vs. Offshoring: Benefits of Domestic Business

Posted on Fri, Apr 12, 2013

IT outsourcing offshoringOutsourcing and offshoring: these are both terms that we hear on a daily basis. Some companies, however, do not understand the difference between outsourcing these services and offshoring them. With the rising prevalence of outsourcing IT services to save costs, your company may face this decision in the future.

The Washington Times explained that offshoring and outsourcing are, in some cases, one in the same. Outsourcing in the broad sense refers to a company contracting with another provider with expertise for certain tasks that would otherwise have to be completed in-house. Offshoring is a subset of outsourcing that takes the outsourcing contract into a different country, often allowing the company to take advantage of lower costs for the work.

While many companies may think it is an obvious choice to select offshoring due to the significant savings, it may be beneficial to work with a domestic IT services provider.

The O-Word (and we’re not talking about outsourcing)

The political climate in the United States has undoubtedly been divided for the past decade, close elections, party lines and hot-button issues have dominated media platforms. Job loss, job creation and unemployment are issues we are inundated with on an almost daily basis, and it is a very real part of our lives. Companies that choose to offshore jobs to another country on a large-scale for a cost-saving purpose are frequently demonized in the media and on the social web.

Every American job lost to a decision to outsource that job to a cheaper market such as Asia is bound to cause resentment from the former employee. When a company does this with several jobs or on a larger scale, it can attract attention in a negative way. I’ve heard the advice “a good sentiment might reach four people, but a bad one will reach 4,000.” Outsourcing services like IT does not need to mean internal job loss; in fact, it may make it easier to allocate your current resources more efficiently.

Cultural Differences

Many companies forget the importance of communication and cultural understanding when hiring a third party vendor. Companies should work with providers who can interact seamlessly with managers and other departments, making a language barrier a major obstacle. Surely many have you have been frustrated when you have been connected an outsourced call-center with a complicated, and sometimes urgent, issue and have difficulty communicating with the voice on the other end.

In addition, it is always helpful if the provider has a level of understanding regarding the company's operations. If a business sells something to U.S. consumers, it may be important for providers to understand the product and its impact on society when partnering with the business for more streamlined operations.

Efficiency is the key here; there will be a lower return on your (possibly) lower investment in offshore service if there are several barriers between you and the people you hire to represent your company. An investment in a trustworthy and market-knowledgeable IT services is an investment in your brand.

Your business’ IT services are the heart of the communications between your business and others. Let us show you the benefits of personalized, close-to-home IT services. 

 

Tags: IT Services, IT outsourcing

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