There are many types of outsourcing and offshoring. There is outsourcing where the clients outsource non-core functions like IT, finance, or HR.
Offshoring is outsourcing that involves moving the work to another country. The Philippines offshore outsourcing industry took off when Y2K came around because it was an international issue likely to happen worldwide which created a demand for skilled personnel in the country.
One reason management is important in outsourcing or offshoring is because it helps companies reduce costs by limiting transportation expenses and time lost if workers have to travel from home office to a third party site regularly. Another reason is that outsourcing enables companies to focus more on customer service rather than business stability as they no longer need to be concerned with the outsourcing company and their outsourcing processes.
Offshoring is becoming more and more popular as technology advances and outsourcing trends shift due to potential cost savings, increased global competition, and the advancement of outsourcing providers. Offshoring has been around for a long time; however, outsourcing has become much easier thanks to the Internet. Now there are outsourcing companies that have websites where they list their available jobs so that businesses can find them easily through search engines or direct links on outsourcing provider sites.
Businesses can manage outsourcing teams online via email, online messaging applications like Skype, Facebook chat, Google Talk etc., video conferencing programs like Webex or GoToMeeting etc., VOIP – Voice over Internet Protocol calls which are making free phone calls over the Internet, and online collaboration tools like Sharepoint which allows for document sharing.
In this article, we’re going to talk about some of the best ways on how to manage an offshore team and why many businesses resort to outsourcing or offshoring as their business strategy.