Synergy is defined as merging of efforts bringing outcomes greater than the expected results, had the job been done by individual proficiency or capabilities.
Today, most business underscore the importance of coalescing their functions and services with a third party, whether a person, a group or an organization, mostly overseas.
This synergized approach comes in three different terms, used interchangeably nowadays: â€œoutsourcingâ€, â€œoffshoringâ€, or â€œoffshore outsourcingâ€. These terms may differ slightly in meaning, but the core message remains the same. Interconnectivity in the 21st century, among nations and races, takes on a new level. It is not much of competition â€“ it is of interdependence.
Are you outsourcing or offshoring? Where do the difference and the similarities lie?
You outsource when you contract out or entrust some of your functions or services to an external entity, or a third party that specializes on similar functions or services. There is no transfer of internal organizational control; only a process of â€œnetworkingâ€ services or functions with a third party, for a fee, to speed up the accomplishment of a specific goal or project. Outsourcing services may be done locally or overseas.
Offshoring is similar to outsourcing, but a network relation is typically done, with a third party or sub-contractor, overseas, hence the term, â€œoffshoreâ€. Offshore outsourcing is the spawn of the two terms.
Delegating internal company functions and services, to a third party aims to save money, that could have been spent on recruiting, hiring, and training of additional manpower, improve quality of work, release company resources for other most essential activities, lowers cost on labor and benefits, as third party sub-contracting, though for a fee, is considerably lower than the total cost paid to a regular employee.
As non-core functions and services get outsourced, focus on company competencies that really matter and which needs attention becomes possible.
This is how most smart business plays the game, today – and they are winning. Would you rather lag behind? 🙂