For the past several years or so I involved in several outsourcing projects for various clients in my IT consulting job. I read several different articles and research reports on outsourcing and there is lot of confusion about the term outsourcing, onshoring, nearshoring and offshoring. Sending IT or business processes from high-cost countries to low-cost countries is commonly referred as offshoring. But there are several different variations exist based on the sourcing strategies, in this blog we will explore them.
Business transformation outsourcing (BTO) is the next logical step for the big outsourcing vendors. In BTO a company’s entire business process is outsourced to the BTO vendor. The BTO vendors not just manage the business processes, instead they work closely with the company to transform and improve the business process to add strategic value to the shareholders of the company. BTO goes beyond the traditional outsourcing in which the external service provider will constantly transform and optimize the business process based on the changes in the marketplace and competition. Read more