A woman thinking about outsourcing

So you have finally decided to use outsourcing to help grow your company.

However, before delving into the world of outsourcing, there are some things you have to take into consideration first. 

For example, what kind of service your company needs, how much you’d be willing to shell out for the service, and the current capacity or capability of your company.

Also, should you opt for onshore, offshore, or nearshore outsourcing? 

What’s the Difference Between the Three? 

With offshore outsourcing, companies hire outsourcing firms from another part of the world. Offshore outsourcing is also the one mostly used by a lot of people and the first model that comes to mind when you say outsourcing. Moreover, offshore outsourcing offers cheaper alternatives compared to other outsourcing models and larger talent pools. 

An Indian man in an offshore BPO company

When you outsource onshore, you hire a company from the same country. It also means you work with the outsourcing firm from the same timezone using the same language and possibly having the same culture. However, the cost of this kind of model is usually more expensive.

An onshore outsourcing manager making deals with your company

The last model, nearshore outsourcing, is making use of the service from another country but from the same timezone. It is cheaper compared to when you outsource onshore. Also, you belong in the same timezone making communication or possibly visiting its office affordable and easy.

A businessman making calls to a nearshore BPO

So Which One Is It? 

It depends on the services you need, the money you’d be willing to shell out, and possibly the company’s capacity to communicate. 

A woman shrugging

If you have limited resources and cannot shell out a large amount of money, an offshore set-up would be the right one for you. It is also good for a small or starting company that wants to get the best deal but does not want to let go of quality service since there’s a large pool to choose from offshore outsourcing firms. 

If you are not sure, have doubts about hiring outside the country, and think you don’t want issues with communication, cultural differences, and timezones, then onshore outsourcing is the right one for you. However, it would cost more. 

Lastly, if you’re unsure about issues on communication but have limited resources, then you should choose nearshore outsourcing. However, there’s also a possibility of limited choices with this model.