Should your business Outsource or Offshore? Find out! Let us take a look at the various pros and cons that both Outsourcing and Offshore Development Centre have.

2. Traditional Outsourcing vs
ODC: Which Process is Better?
In the last two decades, there has been a significant shift in the way global
business is conducted. Gone are the days when companies would conduct
all their activities in-house and preferred to have every person under their
own payrolls. This was the norm in large corporations driven by a large pool
of workers as this gave management complete control over their business
process. With the advent of modern technology in terms of state-of-the-art
manufacturing equipment, IT hardware, automated assembly lines that
required less human intervention, that model became counterproductive.
The proliferation of small businesses also meant that having people under
payrolls proved costly and there was a need for a business model that offers
businesses the same flexibility and at the same time ensured a high return
on investment. In came two business models, ‘outsourcing’ and ‘offshoring’
and changed the business landscape forever.

3. SHOULD YOUR BUSINESS
OUTSOURCE OR OFFSHORE? FIND
OUT!
Let us take a look at the various pros
and cons that both Outsourcing and
Offshore Development Centre have.

4. OUTSOURCING: PROS &
CONS
Pro
Focus on Core Areas
Outsourcing allows you to free your internal
resource from mundane tasks and allows
to focus on the core areas of your business.
Access to Skills
Outsourcing offers you access to a better pool
of skilled people that improves your business
process and creates an innovation based
environment.
Cost Effective
You fix the budget for every project and pay
only for the work done and don’t partake in
overhead costs of your service provider.
Flexibility
This model allows you the flexibility of scaling
up and down the project flow based on your
exact needs.
Con
Lack of Control
You exercise minimum control over how your
projects are executed as most companies won’t
assign dedicated resource or dedicated work hours.
Minimum Commitment
Outsourcing is a bad model if you are looking at a
long-term project, as in this transaction model most
companies don’t promise long term commitment.
Confidentiality
Since they are working with multiple clients at the
same time not signing an NDA can put your
proprietary information and privacy at risk.
Communication Barriers
If you haven’t got your choice right you may have a
hard time communicating with the team due to
linguistic barriers.

5. OFFSHORE DEVELOPMENT CENTER
PROS & CONS.
Pro
Contractual Commitment
Offshore development centers are bound by
contractual commitment and thus work as an
extension of your team offering you more control.
Dedicated Workforce
You would benefit from a dedicated workforce who
would work only on your project based on your
business’ evolving needs.
Talent Acquisition
You would be a part of the talent acquisition process
for your project with most ODCs, and this allows you
to hire the best available talent for your needs.
Strategic Approach
With an ODC you would be able to adopt a strategic
approach and set long-term business goals
that is impossible with outsourcing.
Con
It’s Expensive
Though maintaining an offshore development center
offers you cost advantage, it is far more costly than
outsourcing the job. You may have to pay for the
infrastructure and overhead expenditure.
Long Term Commitment
With an offshore development center, you would
need to start with long term commitment which often
means putting all your eggs in one basket. To sum
up, you can clearly see that both traditional
outsourcing and maintaining an offshore
development center have their own pros and cons
and as a business you should make your choice
based on specific needs, the scope of your project
and duration. .

6. REFERENCES
https://www.semaphore-software.com
https://www.semaphore-software.com/blog/outsourcing-vs-offshore-
development-center/
https://images.google.com/ (pics)

7. LET’S
CONNECT.
WE WORK TO
INNOVATE AND
DELIVER THE
BEST
SOLUTIONS
ACCORDING TO
YOUR
REQUIREMENTS.