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Offshoring is Even More Costlier than In-House Development or Outsourcing

There is a misconception that Offshoring and Outsourcing are same. The big difference needs to be understood, as it affects the business growth. Outsourcing for Startups and Business Process Outsource related to customer service is beneficial. Outsourcing Development of Software is risky.

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Offshoring is Even More Costlier than In-House Development or Outsourcing

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  1. Offshoring is Even More Costlier than In-House Development or Outsourcing

  2. First of all it’s essential to understand the difference between Offshoring and Outsourcing; and later it’s important to know the pros and cons of both. Some people claim that Outsourcing for Startups impacts the job security of a nation. Outsourcing increases jobs, rather than decreasing the jobs in a country. It’s Offshoring Process that affects the jobs in a nation, and not Outsourcing Process. Now what is the difference is the main point of concern. Outsourcing means a company gets their work done from a third party service provider. It’s not necessary that the company has to be outside the primary nation. Outsourcing to third parties is possible in both situations i.e. within the nation as well as outside the nation.

  3. Offshoring is the process, where a company’s tasks are always exported i.e. transferring the work outside nation. Offshoring is done with an intention to reduce costs, by getting the tasks done in low income nations. Due to offshoring the jobs that would otherwise be available to citizens of a nation, are transferred to other nations. This may be economically beneficial to the company, but not to the nation. Many companies like General Motors, Dell, etc. outsource, as well as offshore their company’s work. The biggest advantage of offshoring is the political instability. Whenever there are political changes in a nation, where the work of a company is offshored; it may increase the cost in future. So, the objective of cost reduction does not help in such circumstances.

  4. Business Process Outsource is related to inbound and outbound customer service, customer support or technical support; and is a common practice across the globe. It’s very costly to have an in-house customer service facility for the company’s customers and/or clients. So, most of the companies outsource their BPO (Business Process Outsource) related tasks. As far as it concerns to Outsourcing Development of Software or other IT related services, most startup companies are confused. They believe that their source code and confidential data related to software development would be on risk, if they outsource software development. It’s natural for companies to worry about their data confidentiality and privacy.

  5. Business Process Outsource is related to inbound and outbound customer service, customer support or technical support; and is a common practice across the globe. It’s very costly to have an in-house customer service facility for the company’s customers and/or clients. So, most of the companies outsource their BPO (Business Process Outsource) related tasks. As far as it concerns to Outsourcing Development of Software or other IT related services, most startup companies are confused. They believe that their source code and confidential data related to software development would be on risk, if they outsource software development. It’s natural for companies to worry about their data confidentiality and privacy.

  6. However one thing for sure is that, if the project related to Outsourcing Development of Software or ITES is delivered to some reputed company like Support Ninja, there will never be a problem of confidential data or privacy related issues. Small scale and medium scale companies have a limited amount of financial setup; especially if the company is still at the startup stage. Outsourcing for Startups is thus more important because they get quality work, skilled manpower, growth, reduction in cost and faster process of their company’s tasks. Support Ninja is a company headquartered in Austin, Texas with a branch located in Philippines and India.

  7. The company deals with most complex processes and also provides outsourcing services with their own state of the art offshore facility; in low cost countries like India and Philippines. Apart from this, the most important benefit of hiring Support Ninja for outsourcing is their infrastructure and expert level manpower. The company hires only skilled and qualified workers with more than sufficient hands on experience, and who hold globally recognized certifications. The company can handle inbound as well as outbound business process outsourcing, lead generation and several other similar services.

  8. Thank You

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