| term outsourcing has been heavily used over | | | | From the supplier’s point of view, outsourcing |
| the past few years, but oftentimes the meaning of | | | | can be both a pain and a boon. On the bright side, |
| this process wrongfully understood. If we were to | | | | you have almost full control over the project and |
| give it a dictionary definition, outsourcing would be | | | | you can choose your own ways to get it done. |
| the process of an organization or individual | | | | However, you risk not hitting the points that the |
| transferring the ownership of a business process to a | | | | buyer aims for, especially if his communication skills |
| supplier (which in turn can be an organization or | | | | are not very high. |
| individual). Some would argue that this is a simple | | | | Outsourcing is a bigger business branch, containing |
| business relationship, but with outsourcing | | | | several smaller ones such as offshore outsourcing, |
| there’s a catch. The difference between a | | | | crowdsourcing and freelancing. Offshore outsourcing |
| simple business relationship and outsourcing is the | | | | is mainly a term used by US-based businesses, |
| way the control over the business process is handled | | | | describing the outsourcing of projects in Europe or |
| and transferred. In the first case, the buyer retains | | | | Asia. The projects are sent over to companies in |
| full control over the entire process and simply tells | | | | countries that are less developed, offering a cheaper |
| the supplier what to do, with details nailed down to | | | | work force at equal quality. The IT market for |
| the point. With outsourcing however, the buyer rarely | | | | example is constantly being offshore outsourced in |
| instructs the supplier on HOW to do the work. | | | | India, Romania or Ukraine as well as several other |
| Basically, the buyer will simply tell the supplier WHAT | | | | countries. |
| he needs and give him a set of general guidelines, but | | | | Crowdsourcing is a clever business technique that |
| it’s left to the supplier’s creativity to | | | | relies on enthusiasts to do the job done. For |
| get the job done. | | | | example, electronic freelancers, photo enthusiasts, |
| Of course, outsourcing is a double-edged sword for | | | | amateur writers are all examples of crowdsourcing. |
| both buyers and suppliers. From the buyer’s | | | | Their work is bought of very cheap and oftentimes |
| perspective, the benefits of outsourcing are the | | | | free and then used in a business. Crowdsourcing is |
| reduced involvement in the project, which allows for | | | | considered slightly unethical by some, since the buyer |
| more spare time focused in a different direction. You | | | | will profit from someone’s work without |
| don’t have to keep a constant eye on the | | | | having to pay for it, however in most cases, the |
| supplier’s work, simply because you’re | | | | suppliers will be glad to see their work being used, |
| more interested in the final outcome than on how | | | | their photos being published and their articles |
| they handle things. On the other hand, the end result | | | | appearing on websites or in magazines. |
| might not be satisfactory, which creates a sort of | | | | Besides these methods, there are several other ones |
| deadlock situation. On one hand, the supplier might | | | | related to outsourcing, including homeshoring, open |
| argue that that’s what you asked for and | | | | outsourcing, supply chain outsourcing, vertical |
| that you did not provide them with conclusive | | | | integration and so forth. |
| information. | | | | |