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What Is Offshoring? What Is Outsourcing? Are They Different?

Definitions can be boring and they are often best left to expensive lawyers to work through. But it’s essential you understand a couple of important definitions. We see a difference between ‘outsourcing’ and ‘offshoring’. Let us explain why.

Outsourcing a task means you are handing a discrete process or task to an outsourcing company or professional to perform for you. They do the work with their staff and return it to you. You can outsource tasks either in your own or another country and often pay by the hour or project. The point is, someone else is doing it for you using their systems. This means the work is being done their way.

Two common tasks are outsourcing payroll to a specialist company to handle for you, and using a company in India to produce your tax returns.

The way we see offshoring is that your work is being done offshore (obviously) by someone on your own team: an employee or contractor who works for you. They just happen to be in another location. And they do things your way, using your systems. We liken it to having someone work at home for you, only instead of them working just up the road, they are working in another country.

We don’t see one model as superior to another. They are just different. Ultimately, it comes down to your preference. A bit like Apple vs Samsung. Who cares?

Choose the one you prefer to use.


Where to From Here

You can book an appointment with our team to learn more about offshoring and be at the forefront of the accounting industry.



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