Fundamentals of Offshore Outsourcing

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1 Offshore Outsourcing Offshore outsourcing is the process of obtaining goods and/or services from another country. Organizations conduct outsourcing when the costs of producing the products within the business entity are higher than when obtained elsewhere. With globalization taking effect in modern business environment, offshore outsourcing has become a common thing. Criteria for offshore outsourcing A company should consider several factors when making offshore outsourcing decisions. These decisions are: legal affairs associated with outsourcing in the countries involved in the transactions. The cost of selecting the outsourcing firm should be considered to avoid too much additional costs. In addition, the transaction costs involved should be considered to ensure the whole process is profitable.

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