Onshoring, offshoring and Nearshoring

When selecting a country as a corporate outsourcing destination, a company must consider many factors such as culture, availability of skills, and management--to name a few. Proximity and time zone considerations are also important. Discuss and compare the benefits of onshoring, offshoring, and nearshoring.

According to Worley (2012) outsourcing was considered beneficial to their law firm due to operations of 80 to 90% fee was toward operations. In order to be competitive in the current economic climate, they needed to produce ways to cut down cost and streamline operation-this would be done through outsourcing. Whereas, offshoring differ by hiring employees employment at different location overseas like India, Manila. While nearshoring in U.K. employed from within their region which helped cut down cost and increased jobs in the area.

Then, Russell (2010) searched global sources companies in the United States looking for low-cost countries. In relation to China who is the primary source for supplies. Globally, most companies want to be position for future marketing sourcing, due to China being the fastest growing market in the world globally. These tactics are driving forces toward developing closer relationship with China. Having global sources connecting to onshoring, offshoring, and nearshoring build economic growth for companies culturally, skilled labor and management.

References

Russell, R. (2010). Operations Management: Creating Value Along the Supply Chain (7th ed). John Wiley & Sons. Retrieved from http://online.vitalsource.com/books/9781118062463/S2.2/28

Worley, L. (2012). Outsourcing, Offshoring, Nearshoring, Onshoring - What's Going On?. Legal Information Management, 12(1), 9-11. doi:10.1017/S1472669612000072