Offshore outsourcing is simply defined as outsourcing to outside countries. Some people may think that the process of offshore outsourcing is a walk in the park producing large sums of profits. This notion however is erroneous. It takes a lot of work and initiative to make offshore outsourcing work and produce desirable results. It involves choosing the right model of offshore outsourcing that would fit a particular business need or situation.
Choosing the right model of offshore outsourcing is a very critical phase that companies undergo. Any decision made can either make or break their business options offshore. Making the decision on what model to choose involves aspect of selecting which country, economic conditions of a country, international business strategy, and outsourcing strategy.
There are currently three models of offshore outsourcing that are popular among businesses. These three are outsourcing to a service provider, joint ventures and subsidiaries.
Outsourcing To A Service Provider
Outsourcing to a service provider is the most evident offshore outsourcing model. It has a lot of coverage that range from small projects to multi-year...