REPUBLIC OF THE PHILIPPINES

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

SAN PEDRO CAMPUS
United Bayanihan Proper Rd, San Pedro, Laguna

Almayda, Kimberly R.
January 27, 2022
BSBA HRM 2-1
Mr. Juniper Zulueta
LOGISTICS MANAGEMENT
Quiz No. 4

Discuss the following

1. Local Outsourcing
2. Foreign Outsourcing
3. Different kinds of Outsourcing

Local Outsourcing
Local outsourcing, also known as onshore outsourcing, is when you hire a service
provider from within your own country. This alternative has the advantage of speaking
the same language, having a comparable cultural background, and being in a similar (if
not the same) time zone. It's also a lot easier to catch together in person now and then.
In simple terms local outsourcing means getting a service provider in the same locality
where you are like for example you are here in the Philippines then you will get a
service provider from the Philippines also. Many said that it is truly convenient but much
more expensive.

Local outsourcing has the significant disadvantage of costing more than outsourcing to
another country. Some countries that are agreeing with these are Canada, the US, and
most of western Europe. It is also said that you cannot expect that even though the
provider charge is high, it does not mean that the quality will always be higher,

Foreign Outsourcing
The process of having goods or services produced or executed by enterprises based
outside of the United States is known as foreign outsourcing. While the motivations for
outsourcing are as diverse as the firms that utilize it, the most common reason for
outsourcing is to save money.

Well, as you can see by the word foreign it means from a different place or not in your
same locality. In here you get service provider not in from your locality but in foreign
countries. This type of outsourcing is said to be cheap because it costs cheaper rather
than getting a service provider from your own locality, the reason why it is cheaper is
because you will get a service provider where your timezone is different and the
language that you're using is different. In simple terms, it is cheap but is also not so
convenient to get.

Foreign outsourcing companies are typically based in nations where conducting

business is substantially less expensive than in the United States. India, for example, is
home to a slew of data- and information-processing outsourcing firms. Customers in the
United States pay less for telemarketing and order processing services than they would
in the United States. Computer technology companies in the United States also
outsource the production of their products to factories in China, Taiwan, and other Asian
countries since it is less expensive than producing such things on American soil.
Foreign outsourcing corporations hire workers at cheaper rates than their American
counterparts, lowering the operational costs of an American-based company..

Different kinds of outsourcing

Professional Outsourcing
Professional outsourcing includes all specialist services, such as accounting,
purchasing, administration, legal, CAD, digital marketing, and anything else that your
team can't handle. Many of the services that fall under the category of professional
outsourcing necessitate a license or extensive training.

Professional outsourcing allows you to access a wide range of services while only
paying for the ones you require. This is ideal for both scaling your business and
receiving one-time services. For example, you may require legal assistance simply to
start your firm.

Multi - Sourcing
Multi-sourcing is another approach to integrate the services you outsource.
Multi-sourcing typically includes a combination of IT and other business operations.
Large firms who desire to outsource a variety of IT activities and infrastructure to
diverse providers should use it. Multi-sourcing, on the other hand, is a wonderful
alternative for any company that wants access to top professionals, an outcome-based
strategy, and transparency in its IT projects.

Keep in mind, though, that before you begin multi-sourcing, you'll need to have a
strategy in place. For example, you'll need to know what KPIs are important to your
company and have a governance mechanism in place.

IT Sourcing
It’s also possible to engage a service exclusively for IT. If you have particular IT needs
or you are a small firm, this could be a better solution. Even startups require IT
assistance to maintain security, keep licenses current, and manage their networks, and
this is a cost-effective way to do it. You may get help with everything from infrastructure
to app development with IT outsourcing.

Process - Specific Outsourcing

Process-specific outsourcing is hiring a vendor to perform a specialized function, which
might be fairly esoteric. Process-specific outsourcing can be divided into three
categories.

The first is the outsourcing of knowledge processes (KPO). This is for using research
and data analysis to improve products and services.

Legal process outsourcing (LPO) is the second option, which can cover regulatory
compliance, litigation, and other legal requirements.

Finally, recruitment process outsourcing (RPO) encompasses all aspects of the

recruitment process. You can get help with job advertisements, application shortlisting,
and candidate evaluation.

Business Process Outsourcing

Business process outsourcing is one of the most prevalent types of outsourcing (BPO).
BPO can take care of your more routine company tasks including administration,
correspondence, and scheduling. Customer service and lead generating are also
available through BPO.

Offshore Outsourcing
Offshore outsourcing is another possibility. Working with a provider who is located far
away is a requirement of these contracts. It's frequently the most cost-effective option to
save on labor and materials. Furthermore, offshore outsourcing can provide you with
access to a specialized skill set that is superior in one country than in another. Finally,
you might be able to get around regulations in your native nation.

Nearshore outsourcing
Nearshore outsourcing is a type of outsourcing that falls somewhere between local and
offshore outsourcing. This entails hiring a service provider who is based outside of the
country yet nonetheless close by. Nearshore outsourcing would be to Latin America if
you were in the United States, whereas offshore outsourcing would most likely be to
Asia.

Nearshore outsourcing allows you to get the benefits of both onshore and offshore
outsourcing while mitigating their drawbacks to some extent. You'll be in the same time
zone, for example, but you'll benefit from the cheaper costs of doing business in the
other country. Furthermore, there is a lesser possibility of product delivery delays.
Finally, nearshore outsourcing is beneficial for organizations looking to expand into
nearby markets, which is frequently the natural next step.

Manufacturing Outsourcing
Small firms may find it difficult to manufacture things in-house, particularly when
demand grows. Outsourcing is frequently the only way to compete with huge
corporations that have more resources, can afford to hire large teams, and can afford to
upgrade equipment on a regular basis.

Project Outsourcing
It is feasible to outsource all components of a project to a vendor, or even only a fraction
of it. When a company lacks the time, skills, or funding to execute a project, this is a
frequent technique. Website redesign, large-scale content development, and marketing
campaigns are examples of project outsourcing.

Operational Outsourcing
Manufacturing companies use operational outsourcing a lot since it covers services like
equipment repairs. Service-based businesses, on the other hand, can benefit from
operational outsourcing for chores like as gardening and deliveries.