In response to my last three blog posts I received numerous emails from people that highlighted how many different interpretations there are associated to outsourcing and the related terms. I therefore looked up the main topics using various websites sites and sources, and compiled a single list with all the terms I know of, which is shown below. These are the definitions I work with when referring to outsourced activities, if you feel that I have missed some off the list, please send me an email and I will update it accordingly.
- Outsourcing: http://en.wikipedia.org/wiki/Outsourcing
- The contracting out of an internal business process to a third party organization.
- Nearshoring: http://en.wikipedia.org/wiki/Nearshoring
- “the transfer of business or IT processes to companies in a nearby country, often sharing a border with your own country”,[1] where both parties expect to benefit from one or more of the following dimensions of proximity: geographic, temporal (time zone), cultural, linguistic, economic, political or historical linkages.[2]
- Offshoring: http://en.wikipedia.org/wiki/Offshoring
- Describes the relocation by a company of a business process from one country to another, typically an operational process such as manufacturing, or supporting processes such as accounting.
- Captive service or captives: http://en.wikipedia.org/wiki/Captive_service
- A portion of Business Process Outsourcing where an organization will use a wholly owned subsidiary instead of a third party vendor. This is applied to the type of outsourcing in use, for example, one can utilise the terms captive offshore and captive nearshore.
With close to 20 years’ experience in leading, designing and fixing complex outsourcing arrangements in numerous sectors around the world, Willard Enterprises can help you achieve your desired results. If there is something I can do to help your business or someone you know achieve their next challenge, please contact me for more information.