A well-planned business model yields success beyond expectations. A traditional outsourcing company or an ODC in modern days have transformed the business landscape to a whole new level. The good old system of companies conducting all business activities in-house with employees under their own payrolls is gone for good.
Let’s see how these transformations benefit a business on a long run.
Scan through to know if your business should Outsource or Offshore:
Benefits of Outsourcing:
Outsourcing product development refers to contracting certain tasks to third party companies to get the work done with better infrastructure and skills that will indeed cut down cost. The core reasons why a business would choose to outsource would be Cost, Specialization, and Flexibility. An Outsourcing company, in general, gets the work done without having to compromise on quality while letting you obtain significant cost saving. This business model is very flexible and lets you focus on areas that are of key importance for your organization.
Benefits of an Offshore Development Center:
An Offshore Development Center usually referred to as an ODC obtains services or products from another country. It offers a contractual commitment, dedicated workforce and leverages the cost advantage in order to achieve and set long time business goals. Many offshore projects are driven in order to enjoy the benefit of certain tax or tariff relief available in many countries. By leveraging talent offshore, organizations get to lower operating expenses and ensure the productivity level marks a higher level.
Deciding on whether to choose between Offshoring or Outsourcing product development differs from company to company. You can either choose to outsource work without offshoring it or you can offshore work without outsourcing. The ultimate outcome of both the business models is that you get to see significant cost savings and specialization benefits.