Offshoring
Offshoring is defined as the movement of a business process done at a company in one country to the same or another company in another, different country. Almost always work is moved due to a lower cost of operations in the new location. Offshoring is sometimes contrasted with outsourcing or offshore outsourcing. Outsourcing is the movement of internal business processes to an external company. Companies subcontracting in the same country would be outsourcing, but not offshoring. A company moving an internal business unit from one country to another would be offshoring, but not outsourcing. A company subcontracting a business unit to a different company in another country would be both outsourcing and offshoring.
Infinsys understands that the way to keep customer costs low is to run offshore development centers in India where labor is cheaper than abroad. infinsys also understands the importance of face-to-face contact with the customer. In order to fulfill this need, infinsys sends teams to the client sites to “ascertain the client’s priorities and specifications” as well as for installation, testing and training. infinsys also keeps a small group of people onsite with the client during the production. The company uses these small teams to specialize its services to each customer, demonstrating local responsiveness. By keeping costs down and utilizing its resource of cheap labor, infinsys demonstrates its globally efficient strategy.
