The Pros and Cons of Onshore and Offshore Outsourcing

In these modern times, the marketing industry has grown to great heights, providing dynamic and innovative ways to facilitate a business. This period, with the great advances in in information technology, has changed several aspects of how businesses deliver their services to their customers. One of the major factors that changed the face of the industry the most is Philippines outsourcing. It is possible to divide it into two categories: onshore and offshore.

Both onshore and offshore outsourcing are widely practiced in the business world today.

Both of them have their advantages, but they revolve around the same principles. Making a choice between them will be determined by the peculiar needs and preferences of your business. They both also have their drawbacks, which will be factors in deciding which of them to embark on. Basically, despite their similar purposes which are to reduce labor costs, increase productivity, conserve office space and others, they have distinct characteristics that will make one preferable for your business.

Feature of offshore and onshore outsourcing

Onshore Outsourcing

Onshore outsourcing places a geographical limit on the outsourcing, whether within the locality or the same country where your business is located. An example of this is where an Australian country is outsourcing its work to freelancers who are based in Australia. Onshore outsourcing is more secure than offshore outsourcing, but it promises far less rewards than its foreign counterpart.

Geographical advantage is the foremost and most significant advantage of onshore outsourcing over offshore outsourcing. Onshore outsourcing is limited to the country of origin, and this makes the service providers closer and more accessible to your company itself.

Also, both your company and the company you’re outsourcing to are covered by the same rules, and this makes sorting out the legal position on intellectual property issues easy.

In summary, onshore outsourcing allows you to save costs and office space, and promotes effective supervision of the staff handling your work.

Offshore Outsourcing

Offshore outsourcing, whether in the Philippines or elsewhere, is very similar in a number of ways to onshore outsourcing. However, offshore outsourcing is a lot more favorable than onshore outsourcing when one considers the cost savings and efficiency. Particularly, there is a world of difference when it comes to the operational cost savings, due to the much lower costs of doing business in foreign countries like the Philippines and India.

Philippines outsourcing enables you to save more than 50% of your normal costs, as the whole process is done for you, and you do not need to bother about miscellaneous expenses such as travel, training, communications and others.


Offshore outsourcing may come with more risks than its onshore counterpart, but if you have taken care in selecting a capable service provider, it will pay off tremendously on your company’s bottom line.

Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! inspires entrepreneurs build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.


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