Advantages and Disadvantages of Offshoring – Offshoring Pros and Cons... This slideshow is about the advantages and disadvantages of offshoring and has been researched and written by Russell Bowyer. In this presentation I am going to cover the following main headings about the advantages and disadvantages of offshoring: 1. What is offshoring? 2. Reasons for offshoring. 3. Advantages of offshoring. 4. Disadvantages of offshoring. 5. Offshoring vs outsourcing. 6. For what services and production can offshoring be used for? 7. What to keep in mind with offshoring. 8. Factors to consider when selecting an offshore outsourcing company.

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2. Offshoring Pros and Cons
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3. Advantages and Disadvantages of
Offshoring
This presentation is about the advantages and disadvantages of
offshoring and has been researched and written by Russell Bowyer.
In this slideshow I am going to cover the following main headings:
 What is offshoring?
 Reasons for offshoring.
 Advantages of offshoring.
 Disadvantages of offshoring.
 Offshoring vs outsourcing.
 For what services and production can offshoring be used for?
 What to keep in mind with offshoring.
 Factors to consider when selecting an offshore outsourcing
company.
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Watch the Offshoring Video

5. What is Offshoring?
Offshoring is the moving or
relocation of one or
more business operations
from one country to another.
Advantages and
Disadvantages of
Offshoring – Up to 70%
labour cost savings can be
achieved with offshoring.
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6. Reasons for
offshoring
The top 5 reasons for
offshoring are covered on the
next slide…
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7. i. Offshoring to lower operational and labour costs
ii. Offshoring allows companies to gain access to new markets
iii. Access to a wider network of knowledge
iv. Delegation of routine and mundane tasks
v. Call centres and call centre management
To Read The Full Text – Reasons for Offshoring
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8. Advantages of
offshoring
On the next slide are 6 top
advantages for offshoring…
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9. i. Cost savings
ii. Property or real-estate cost reductions
iii. Other associated cost reductions – e.g. light, heat, water re
property costs; HR, management and sickness costs too
iv. Risk management and sharing
v. Offshore government incentives
vi. Offshore tax advantages
To Read The Full Text – Advantages of Offshoring
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10. Disadvantages of
offshoring
On the next slide are 8
disadvantages for
offshoring…
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11. i. Depth of language understanding
ii. Accent barriers
iii. Cultural and social barriers
iv. Communication styles
v. Time-zones
vi. Security issues
vii. Loss of Intellectual Property (IP)
viii. Other higher offshore costs
To Read The Full Text – Disadvantages of Offshoring
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12. Offshoring vs
Outsourcing
Offshoring is the moving or
relocation of one or more
business operations from one
country to another.
Whereas outsourcing is where a
company buys either services or
production from a third party.
Outsourcing allows for greater
flexibility to the company that
is outsourcing the service,
subject to agreed contractual
terms.
To Read The Full Text –
Offshoring vs Outsourcing
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13. For what services
and production can
offshoring be used
for?
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14. i. Call Centres
ii. Accounting & bookkeeping function
iii. IT support
iv. Customer support
v. HR function
vi. Design services, including product design
vii. Research & development
viii. Engineer support
ix. Manufacturing – TV’s, mobile phones, other electronic, toys and games
To Read The Full Text – Services & Production is best for Offshoring
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15. What to keep in
mind with
offshoring
5 things to keep in mind with
offshoring on the next slide…
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16. i. Why offshoring?
ii. Employ an offshoring expert
iii. Offshore location in relation to your business and other
markets
iv. Write a list of the offshoring pros and cons
v. Commodity costs in the offshore location
To Read The Full Text – What to keep in mind
with Offshoring
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17. Factors to consider
when selecting an
offshore outsourcing
company
6 factors to consider when
selecting an offshore
outsourcing company, on the
next slide…
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18. i. Pricing
ii. Available skills and knowledge
iii. Quality of service and production
iv. Quality of the management team
v. Have a watertight Service Level agreement (SLA)
vi. Reliability and flexibility
vii. Communication
viii. Credit checking and company stability
To Read The Full Text – Factors to consider when
selecting offshoe outsourcing company
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19. inBusiness Blog
To Read Russell’s Business Blog
With Topics Such as…
Marketing Mix 7Ps
Solvency Ratio Formula
– Understanding
Solvency Ratios
About Russell Bowyer &
How Whilst fighting For
His Life From Cancer, he
Began to Write Again
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