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Organization's decisions to offshore services are influenced by -
i) Potential benefits such as the availability of cheaper skilled labor and access to foreign markets, and
ii) By risks, such as geographical issues and infrastructure instability in countries that supply the services.

Offshoring: Offshoring of services generally refers to an organization's purchase from other countries of services that it previously produced or purchased domestically; such as software programming or telephone call centers.

Near-Shore Outsourcing: Near-shore outsourcing, a form of offshoring, is the term used to refer to the practice of getting work done or services performed by people in neighboring countries (e.g., Canada, Mexico) rather than in USA.

Person-to-Person Outsourcing: Coined by Alok Aggarwal, Chairman of Evalueserve Inc, PPO means person-to-person outsourcing. The US-based Alok Aggarwal, who is the co-founder of the global research and analytics services firm, says offshoring is now beginning to go mainstream and is touching the upper class and working class alike.

According to Evalueserve, PPO services follow two business models: -

Outsourcing: An HR Perspective

There is an increasing trend for outsourcing HR functions and this trend will continue. Many software companies are tending to outsource HR activities in large numbers to expert external consultants.

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* Contributed by: -
Sheeba Rehman,
Sr. Lecturer - Management,
IMS, Noida.
Article posted on November 2, 2008.