Outsourcing ≠ Offshoring

by Michael Hsu on March 30, 2010

So 6/7 times out of 10 when I tell people that DeepSky is in the business of outsourced accounting services, they immediately ask which country do I outsource my work to. I can almost hear what they are really asking is, “which Asian country are you sending my (top secret) financial information to to take advantage of the difference in standard wages.” They couldn’t be more wrong.

The fact is, outsourcing does not always equal to offshoring. Business process (in my case, accounting) outsourcing simply means to subcontract a business function to a 3rd party provider. This provider can be in the next office, down the block, in another state or half way around the world. The benefit of outsourcing isn’t exclusively lower price either. Some of the benefits that businesses see from outsourcing processes include: leverage of expertise not available in-house, free-up in-house resources, time saving, reduce in “hassle” of supervising and training, etc.

So the next time someone tells you that they are in the business of (accounting) outsourcing, try and resist yourself from immediately relating them to the Indian call center that you deal with or the factory in China that builds most of our daily goods. We just may be your neighbor from down the street. :)

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