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The Little Book of Big Decision Models by Dr. Jim McGrath

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MODEL 49

OFFSHORING CORE ACTIVITIES

Use this when you wish to move a substantial part of your core business overseas for strategic reasons.

The terms outsourcing and offshoring are often confused or used interchangeably. Outsourcing refers to the transfer of non-core activities such as cleaning or maintenance services to an organisation that specialises in that function. Offshoring is the transfer of core activities such as production or IT support to another country.

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HOW TO USE IT

  • Recognise that any decision to offshore is a major strategic decision that will require the detailed assessment of advantages and disadvantages and careful implementation. ...

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