Off shore outsourcing here to stay

Off shore outsourcing is a topic that divides the world in two camps. A lot of dust has been raised on this issue in the past. Even with reams of paper written and high decibel voice lending support to either side it hasn’t changed the principles of business. An emotive approach can behold logic for a short period, however it is rationality that prevails in end and makes the world move on. Offshore outsourcing is one such rational way of carrying out business profitably in this globalized world. It is a mega trend that can steam roll any opposition driven by its huge advantages

Advantages of offshore outsourcing

Some of the main advantages of outsourcing are the opportunities to tap into larger talent pools of human resources at a lower cost. It helps improve the process, increases productivity and scales up the operation at a much faster pace. It also offers a cost effective option of overnight turnarounds (India has the strategic advantage of the geographic time difference of 10-12 hours with US and 5 hours with Europe). Outsourcing allows the companies to concentrate on their core strengths and stay ahead of competition.

Complete Outsourcing: This is the most popular and cost efficient model, also known as third party outsourcing. Here the vendor carries out the entire outsourcing job from cradle to grave. This process scores over the other models by providing improved economies of scale. It also offers better technologies along with inherent incentives of process improvements.

Captive Operation: In this model companies set up their own offshore unit at an overseas location. Here, the process control remains in-house and process knowledge is retained by the organization. This is best suited for companies where data privacy is a major concern. However, assurance of data security comes at a higher cost than the third party model. Captive centers being an extension of the mother Company are slow to change and easily inherit their inefficiencies.

Hybrid Model: The Hybrid model through joint ventures has best of both worlds. It combines the best of domain knowledge, inherent incentives of process improvement a significant cost advantage, where process and work methods can be designed to deliver the best customer experience.


In the current globalized world, market forces write the rulebook of business. Offshore outsourcing is one such rule, evolved from highly competitive market. It has now become a necessity for any business to remain competitive, now and increasingly so into the future.