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External and Internal resources Insourcing Outsourcing Offshoring.

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Presentation on theme: "External and Internal resources Insourcing Outsourcing Offshoring."— Presentation transcript:

1 External and Internal resources Insourcing Outsourcing Offshoring

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3 Why is it possible Low cost fast communication Ease of international travel Newly developing economies with low costs

4 Why outsource Get access to more experienced people Cut fixed costs Focus on your core business

5 Outsourcing vs Offshoring Outsourcing Offshoring

6 Why outsource Much IT work is Intermittent – Installing a network is not done often – Upgrading an OS is not done often – Would you do your own dentistry? External experts will get constant practice – Consultants are expensive – But you only pay for them when you need them

7 Why offshore Same benefits as outsourcing Time zone advantages Lower costs But TANSTFL – ( There Ain’t No Such Thing as a Free Lunch)

8 India English is the language of business Huge pool of available talent Lower costs/Good communications

9 Examples of offshoring Software Development Medical transcription Call Centres/Technical support

10 Problems with Offshoring A 8,000k relationship is not easy Language/Accent can be an issue Culture can be an issue

11 Mitigating problems Don’t be a cheapskate Exchange some staff Technology/VOIP Chat etc

12 In summary Call centres, Transcription, Software Dev You might save money People on demand Cultural and Language problems You might loose control …

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