Is there a difference between offshoring and outsourcing?
Offshoring is the practice of hiring workers in another country other than where your company is located. Offshoring Inc. is an extension of you and your company. Your offshore staff act as your employees, whom you manage just as if they were next door. Outsourcing is the practice of buying products and/or services from a third party. Outsourcing can take place in the country in which you are based or in another country. Wherever you contract these outsourcing services, they remain a third party vendor. One example would be an auto manufacturer outsourcing their need for vehicle tires to an independent supplier. This works well for certain industry segments but in the knowledge economy and the human services industry, offshoring is the most effective method for extending your workforce, affording you input and control at every level.
