Lecture # 05

Methods of Outsourcing
Outsourcing traditionally involves the transfer of non-core competencies to
an organization which specialises in the provision of that service.
 Methods of Outsourcing
Outsourcing traditionally involves the transfer of non-core competencies to
an organization which specialises in the provision of that service.
 Onshore Outsourcing
Onshore Outsourcing does not tend to generate large reductions in
labour costs and so the key driver tends to be to benefit from the
expertise of the third-party provider.
Onshore Outsourcing
 Offshore Outsourcing
The Offshore model offers the greatest benefits to clients in terms of cost
savings, availability of skilled resources and time zone advantages
 Offshore Outsourcing
The Offshore model offers the greatest risks to clients in terms of
IP, Security, lack of control and management effort needed.
Nearshore Outsourcing