Simon

Cumbria

IT

The first thing to say is that there are two very different things being discussed here. In many places, including to a certain extent in this article, they are used interchangeably. They are NOT the same, they are very different but related subjects.

What am I on about? The difference between "outsourcing" and "offshoring". They are not the same thing but because the first often goes with the second, people are now getting to treat them as one and the same thing.

It's possible to offshore without outsourcing - but you usually have to be really big to do that. And you can certainly outsource without offshoring.

As the article does say, it's important to look at the reasons either or both are being considered.

As an analogy, the majority of people don't do their own car servicing & repairs - it's not part of "what they do" and it would be costly (in cash or time or both) to acquire the skills and tools to do it. So most people outsource it to a garage - a logical process where a business can provide a better service to a number of customers than the customers would get if they did it themselves.

On the other hand, most people don't outsource the driving - they can do that themselves and (in most cases) it would cost them a lot more to outsource it. Not many people can afford to ring the bell and request "bring the Rolls round to the front door please, Parker" ! But if your car usage needs are small enough, it might be practical to outsource the car altogether - usually known as a taxi. But there are hidden costs as well - if you don't own and drive your own car, then you don't have the flexibility to decide "I can go on <insert mission> right NOW" as you will be constrained by the availability and flexibility of your outsourced process.

But in the same way, businesses need to look at all aspects and decide it it's really the right option for them.

It's time to leave the religion and rose tinted spectacles at home -this requires rational thought.