What is the difference between outsourcing and offshoring?
Although the terms ‘outsourcing’ and ‘offshoring’ are often used interchangeably, there is a significant difference between the two.
Outsourcing is the movement of internal business processes to an external organisation such as a Business Process Outsourcing (BPO) provider that may or may not be in the same country.
In the instance of outsourcing to the Philippines, the BPO takes responsibility for delivering a pre-determined result for your business thereby allowing you time to concentrate on your core business.
To maximise ROI from outsourcing, we recommend that you select a BPO that offers the services of business process specialists who can work with your management to outline expectations and then work with the implementation team in the Philippines.
Back of house business process such as customer service, telemarketing, appointment setting, administration, IT support and much more can all be outsourced.
Offshoring is the relocation of a business process from one country to another—typically supporting processes.
Companies using an offshoring model can either set up their own company offshore or engage the services of a BPO. BPOs typically offer three main service options. The critical difference is the where the responsibility for the delivery of results lies.
1) Co-managed offshore teams
This solution is for business owners and managers who want to stay in control of their offshore team’s tasks and results. You can offshore individual roles and departments or your entire back of house operations.
The BPO recruits talent in the Philippines and you make the final selection. Together staff are co-managed. Usually, the BPO takes care of all the HR, IT, infrastructure and employee retention initiatives, leaving you free to focus on job performance and results.
Illustrative roles include: web development, IT support, accounting and bookkeeping, data entry, graphic design, inbound and outbound calling, web design, customer support, administration and digital marketing.
2) Comprehensive outsourcing
As outlined above, this is a full service outsourcing solution where the BPO takes responsibility for delivering a pre-determined result for your business thereby allowing you time to concentrate on your core business.
3 ) Build operate transfer
A Build-Operate-Transfer (BOT) model is suitable for companies wishing to ultimately establish their own company in the Philippines. Initially, a BPO will build your team and manage your offshore operations, then, when you are ready, they transfer your team and operations to your Philippine-based corporation.