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What is OffSourcing ?

Benefit From Gray Arrow A Kaytek Business Consulting Perspective





Down Arrow What is OffSourcing ?

It is a Kaytek Coined Word formed by merging the two words 'Offshore' & 'Outsourcing'.

It refers to the Sourcing of Both Goods and Services from External Entities (Organizations or Persons) from Locations Outside the Country.

'OffSourcing' can either be Of Manufactured Goods or Professional / Other Services.

This OffSourced Work ( Activity, Task or Process ) can be either tightly Integrated with or Independent of other Work.

Obviously, the less tightly integrated the work ( Activity, Task or Process) is with other components, it is easier to Offsource.

Like any other business initiative, Offsourcing too has some promising positives & potential pitfalls.


Offshoring - A Kaytek Viewpoint

Offshoring - A Kaytek Viewpoint


Offshoring - A Kaytek Viewpoint


Offsourcing helps Kaytek Cut CostsCut Costs Kaytek Satisfy Stakeholders Satisfy Stakeholders Kaytek Raise Revenues Raise Revenues.





Down Arrow Why is OffSourcing done ?

Two Reasons drive OffSourcing.

Primarily Lower costs due to Currency Rates Arbitrage between developed & developing countries.

Also because Of Large Numbers Of Manpower With Specialized Skills.

As the CEO Of Sun Microsystems says, " The smartest people in the world do not work for you."

'OffSourcing' enables you to leverage external skillsets & low cost resources for your benefit.

It also gives you first hand cross cultural experiences with individuals & organizations in fast growing economies.

Gray Arrow Related - What is Outsourcing ? Offshoring ?

You may also read Gray Arrow A Starting Step...



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Last Updated on 24th March 2009.
Posted on 13th July 2004.
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