Name and Describe Five Different Alternatives Available for Outsourcing

Question

Examlex · Accepted Answer

The Answer is Many different alternatives are available for outsourcing, some of which are listed below:
• Offshoring-Offshoring is the movement of a business process (in whole or in part) done at a company in one country to another company in another, different country.
• Rural sourcing-Rural sourcing is the movement of a business process (in whole or in part) done at a company to another company located in a lower cost setting within the same country. In the United States, there are large differences between the salaries paid to IT workers depending on where they live and work. As reported from the Robert Half 2009 salary survey a software developer's salary ranges from $60,000 up to $100,750 depending on the exact skill set they posses and where they work. Larger cities such as Boston and San Francisco pay on average 30 to 35 percent more. (Robert Half, 2009) Companies can save money by outsourcing to sellers located in lower-cost markets.
• Nearshoring-Nearshoring is the movement of a business process (in whole or in part) to companies in a nearby country, often sharing a border with the company's own country. In the United States, nearshoring generally describes work sent to Canada and Mexico. Nearshoring is becoming a popular alternative for companies that don't want to deal with the cultural, language, and time zone differences involved in offshoring to faraway places.
• Multisourcing, or best-of-breed sourcing-Outsourcing can involve a number of different types of outsourcing (for example, nearshoring, offshoring, and rural sourcing); this is called multisourcing, or best-of-breed sourcing. A company chooses the services of a large outsourcing partner, such as IBM or EDS, and then, based on costs and other features, the company can decide where the work will get done. IBM and EDS have offices and/or partners in all corners of the globe, which allows them to offer a best-of-breed approach. The company signs one contract with the seller, but the work is done at many different locations-programming in Canada, help desk in India, and so on.
• Insourcing-Insourcing, the opposite of outsourcing, is the movement of a business process within a company to an internal entity (inside the same company) that specializes in that operation.

Name and Describe Five Different Alternatives Available for Outsourcing

Definitions: