Offshore Outsourcing

September 15, 2012




Offshore outsourcing is the business process of hiring an external organization to perform a business function in a country other than the one where the products and services are actually developed. It is contrasted with offshoring, in which the functions are performed in a foreign country by a foreign subsidiary.

There are four basic types of offshore outsourcing:

  • ITO- information technology outsourcing
  • BPO- business process outsourcing covers things like running call centres
  • Software R&D- offshore software development
  • KPO- knowledge process outsourcing covers processes that require a higher degree of specialization and skill sets.

The driving factor behind the development of offshore outsourcing has been the opportunity to cut costs while the key enabler is broadband Internet. 


Some of the countries that provide such services are (in alphabetical order)

Argentina

Web & Software Programming, Game Development, IT Support, Network Solutions, Offshore Outsourcing Service

Bangladesh

Web & Software Programming, Game Development, IT Support, Network Solutions, Offshore Outsourcing Service

Belarus

 Programming, R&D

Brazil

Web & Software Programming, Game Development, IT Support, Network Solutions, Offshore Outsourcing Service

Bulgaria

Programming and R&D

China

Programming, Data Entry, Customer Support, F&A

Egypt

Customer Support and Programming

India

Full Spectrum Services

Indonesia

Programming, Data Entry, Customer Support

Malaysia

Customer Support and R&D

Nepal

Programming, Customer Support

Philippines

Customer Support, IT Support, Programming, Animation, Transcription

Philippines

Programming, R&D, Data Entry and Customer Support

Romania

Programming and IT

Russia

Programming and R&D

Pakistan

Programming, Customer Support

Panama

Programming, Customer Support

Ukraine

Programming and R&D

 
Offshore outsourcing has propelled several countries to prominence in the global business map. At the same time, it has also worked against the offshoring-worthiness of some destinations due to increasing wages. In Moscow, IT wages have increased by 50 percent in the past three years. Banking industry IT turnover in some cities of India has exceeded 30 percent. Hiring talented IT professionals is seen as one of the biggest challenges for firms. 
 
Gartner’s ranking of offshore outsourcing ‘hot spots’ 
 
Asia Pacific: 
 
 
Americas: 
 
 
Europe, Middle East and Africa: