Understanding the popularity of outsourcing vs. offshoring today

Businesses today depend on offshoring and outsourcing more than ever for several key reasons:

1. Talent shortage

According to recent studies, an acute talent shortage in the UK has doubled over the last decade. This massive shortage forces companies to look beyond their borders for the necessary skills.

2. Globalisation

Globalisation has accelerated the trend of companies establishing an international presence and distributed teams worldwide. Setting up remote teams enables new global business models and international collaboration. Offshoring and outsourcing naturally follow as consequences of globalisation, which drives economic growth and competitive advantage.

3. Innovation needs

The rapidly evolving marketplace and constant need for innovation require new ideas and fresh approaches that may come from anywhere around the globe. Offshoring and outsourcing help tap into creative talent worldwide.

4. Breaking convention

Rigid, solely in-house business models can stifle companies. Offshoring and outsourcing broke the mould of traditional approaches, enabling firms to shake things up, take risks, and pursue significant returns in new ways. They provide flexibility to transform operations.