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What is Offsourcing ?
It is a Kaytek Coined Word formed by merging the two words 'Offshore' & 'Outsourcing'.
It refers to the Sourcing of Both Goods and Services from External Entities (Organizations or Persons) from Locations Outside the Country.
'OffSourcing' can either be of manufactured goods or professional / other Services.
This offsourced Work ( activity, task or process ) can be either tightly integrated with or independent of other work.
Obviously, the less tightly integrated the work ( activity, task or process) is with other work components, it is easier to offsource.
Like any other business initiative, offsourcing too has some promising positives & potential pitfalls.
Why is OffSourcing done ?
Three key reasons drive OffSourcing.
Primarily lower costs due to currency rates arbitrage between developed & developing countries.
The availability of large numbers Of manpower with specialized skills.
Near zero communication costs across the globe.
As the CEO Of Sun Microsystems had once said, " The smartest people in the world do not work for you." OffSourcing enables you to leverage external skillsets & low cost resources for your benefit.
It also gives you first hand cross cultural experiences with individuals & organizations in fast growing economies.
Offsourcing helps you achieve your 3 business objectives of
Related - What is Outsourcing ? Offshoring ?
You may also read A Starting step for offsourcing...