Outsourcing Vs Offshoring

It helps to understand the definitions.

Using offshore white collar labour is a relatively new phenomenon, so people have scrambled to come up with terminology to define it. Outsourcing, offshoring, offshore outsourcing, staff leasing, remote staff, offshore staff, offshore recruitment, business process outsourcing or BPO, legal process outsourcing or LPO, and knowledge process outsourcing or KPO, are just some of the buzzwords being bandied about.

But of all of these, the concept of using offshore labour can be broken into two offerings and be best referred to as ‘offshoring’ and ‘outsourcing’.

Offshoring

Offshoring is where a company (the client) engages an intermediary who is based offshore and helps the client to engage staff in that country. The client has direct managerial control over the staff and is involved in the recruitment process to select their offshore team. The intermediary’s services range from simply assisting with recruitment through to a full service offering, which includes recruitment, training, strategy assistance, human resource management support, IT support, and the provision of office facilities.

AMBS Offshore Staffing Solutions offers contract and full time offshore staffing solutions in partnership with our host, Diversify ISS, based in the Philippines.

Outsourcing

Outsourcing is where a company (the client) engages a third party service provider to provide a range of services under a pre-agreed service level agreement. The amount the client pays to the service provider is often linked to outcomes. The client typically isn’t involved in selecting staff to perform roles or in directly managing or controlling those staff. The staff members are under the sole control and direction of the outsourcing service provider and the service provider can change the staff without regard to the client.

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