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Brief Guide to Offshore IT Outsourcing

Brief Guide to Offshore IT Outsourcing

Are you mulling over the decision of expanding your business to a foreign country? It is advisable that you opt for offshore IT outsourcing to make things simpler for you. Following are some of the features of this popular practice.

What is Offshore IT outsourcing?

Offshore outsourcing is basically the practice of appointing an external firm or organisation in order to carry out business tasks in a foreign country. However, keep in mind that the products or services are not developed in this particular country. Several businesses tend to get confused between off-shoring and offshore outsourcing. Both these practices are drastically different.

What are the different types of offshore outsourcing?

IT offshore outsourcing can be broadly classified into four main types. All these IT outsourcing categories have spread across the globe. In addition, they have also been met with favourable response. You should consider the pros and cons of different types of offshore strategies before arriving at a decision. Here are the four basic types of Offshore IT outsourcing strategies:

1.ITO or information technology outsourcing

2.BPO or business process outsourcing

3.Software research and development also known as offshore software development

4.KPO – knowledge process outsourcing

The advent of the internet has further simplified the process of outsourcing. Of these, BPO is one of the most popular outsourcing strategies. However, you will require an efficient team if you are planning to opt for the BPO strategy in a foreign country. In addition, you will also require an IT support team along with a data centre system. A data centre system is the place which houses data communication connections along with computer systems. For instance, data center Malaysia will house telecommunications and storage systems.

A major benefit of offshore IT outsourcing is that you can reduce the labor costs considerably. However, it is recommended that you conduct a detailed research before arriving at a decision.


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