Outsourcing vs. Offshoring – What’s the difference?

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Hiring other firms to help you work more effectively and increase quality is good business

Wise business managers know the value of outsourcing and how it enables them to cost-effectively offer more to their customers for less. However, many consumers are wary of the practice, but this is because they confuse outsourcing with offshoring. While there can be similarities, there are distinct differences. Outsourcing and offshoring are not synonymous.

Outsourcing: To hire another company to work for you is outsourcing. Virtually every business in existence outsources some of its work to other companies, either on a small or grand scale. This may be work they don’t want to do, lack the staff or equipment to do, or can’t do as well as another company that specializes in it.

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Most US-based companies that outsource work, outsource it to other US-based businesses. This is a win for both companies, their workers, and the US economy. Outsourcing is good. It produces jobs, lowers the cost of goods and services, and improves quality and efficiency.

Offshoring: Contrast this to offshoring. When a service or the production of a product is moved to a different country, this is offshoring. Literally the work is shipped overseas, or offshore. Politicians frequently criticize offshoring because it represents a loss of jobs within the United States. This bolsters a foreign country’s economy at the expense of our own. Unfortunately, the media often reports this as outsourcing when they should rightly label it as offshoring.

The confusion resides in the fact that some outsourcing can go offshore. However, this doesn’t happen nearly as often as outsourcing that is kept within the country. US-based outsourcing is ideal for companies that want to focus on quality. Contrast this to offshoring, which is pursued merely to slash costs, often at the expense of quality. For businesses who don’t care about their customers or providing quality service, offshoring may make sense. But don’t be that business. Put your customers first by providing them with quality service.

When it comes to outsourcing your business communications, quality and effectiveness is key. This means outsourcing to a US-based contact center or business process outsourcer (BPO). Outsource your communications to a US-based contact center. Then everybody wins.

Ansafone Contact Centers, a 24/7 live contact center service provider, uses a multi-channel communication approach to help clients communicate via phone and live chat, with email management and social media monitoring. Ansafone’s business process outsourcing (BPO) services specialize in customer service, help desk, tier-1 tech support, sales conversion, and enrollment. Click here to learn more. 

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