Online Outsourcing

Online outsourcing is the Internet-based version of outsourcing, the outsourcing of a department or a workspace to a third party.

For online outsourcing IT services and marketing tasks are mainly outsourced, which can be delivered over the Internet. Here are examples Programming and web design jobs, multimedia productions, logo creation and search engine optimization call. But business services such as translation, researching activities and writing articles are outsourced. Online services traders are here to simplify the merging of client and the contractor (see section online outsourcing in practice). When outsourcing offshoring variant the respective tasks are outsourced abroad. This can be both entrepreneurial tasks as well as to processes.

A subspecies of offshoring is the nearshoring. While under offshoring usually a shift is understood in a country outside of their own continent, called nearshoring outsourcing to a country of the same continent. Homeshoring, as a variant of outsourcing, refers to the relocation of work benefits to employees who are not in the business, but from home work. This form of work is understood as a home office or telecommuting.

History

Outsourcing in general can be traced back to the principles of the division of labor and specialization according to Adam Smith in the 18th century. Workers should be employed in his opinion exclusively in departments according to their specialization to work effectively and efficiently. Exactly the same principle of division of labor and specialization pursued outsourcing and sub-category online outsourcing. By outsourcing, a company can relieve secondary tasks, focus on the core business and thus increasing their own efficiency. " Do what you can do best -. Outsource the rest" Online Outsourcing finds its origin in the United States of America (USA). There could already establish the mid-1990s. In Europe, the model was successful in early 2000 with the development of the Internet. Large companies use online outsourcing for many years. Lately, this form of division of labor also common among small - and medium-sized enterprises.

Benefits

Online Outsourcing involves several opportunities for the client and for the service providers. Due to the global very different wage levels, can be for clients from countries with high wage levels, by outsourcing online services to countries with lower wage levels, can achieve cost savings of up to 70 percent. Especially for small and medium-sized enterprises (SMEs ) and start-ups holds the model of online outsourcing financial benefits, since they must expect a tight budget. In addition, this may mean an additional and often efficient source of revenue for service providers from countries with a relatively low wage levels. Another advantage of offshoring for clients worldwide, the selection of service providers dar. So it is the client able to identify for themselves the most appropriate experts. This service agents are helpful because they often have a global database of experts. Online Outsourcing allows clients and - participants great flexibility in terms of time and labor provision. Since most is project orders in online outsourcing, resulting in a temporary cooperation between customer and service provider. Thus, none of the two contractual long-term commitment and open to other clients or participants. In addition, new markets and customer groups can be through online outsourcing develop.

Disadvantages

Online outsourcing also poses challenges. Personal meetings are due to the spatial distance is not always to the same extent feasible as permanent staff on site. A much more effort is therefore the communication. The employer may be dependent on the service provider. When outsourcing a company loses the executive control over the outsourced work process. The longer the outsourcing partnership is, the harder it is to reintegrate the outsourced expertise through insourcing in the company. There is a danger that this ratio with time is permanent and the necessary know -how is lost in his own company. In particular, the offshoring of online services of diverse cultural and linguistic background of the project partners must be considered. Along with this are a different style of working and different self-evident. Extensive communication is crucial in order to arrive at a satisfactory conclusion of the transaction on both sides.

Online outsourcing in practice

Online outsourcing and offshoring has been available since the 1990s and always find another way into the global labor market. Worldwide, there are several companies which specialize in this area. The largest online service broker located in the United States. In addition, there are numerous companies that operate globally, regionally and locally.

Online services traders make a virtual internet platform on which clients can view projects. On the platforms, potential service providers can register and submit bids for individual projects. For a higher transparency qualifications, work samples and reviews of each service for registered users of the platform cost. The online services traders also provide the infrastructure available to lead teams online. The client then decides who he wants to work.

The German Institute for Standardization (DIN ) has a DIN specification for the outsourcing of technology-based services published (DIN SPEC 1041 )

Trends

The global market for outsourcing and offshoring recorded for years increasing numbers. McKinsey experts have calculated that the offshoring business from the current 80 billion U.S. dollars in annual sales grow to 500 billion in 2020, a six-fold increase in 12 years.

Especially in the field of online offshoring experts see great growth in the coming years ahead. Judging by the Duke University after, in 2008 more than 50 percent of U.S. companies had the right to pursue offshoring. This is double the figure for 2005. Small and medium-sized enterprises will win the forecasts of significance in relation to the growth. Study by Spice Networks According to a plan eight percent of global small - and medium-sized companies to increase the cooperation with external IT service providers. Since the 1980s, India has emerged as one of the main providers of online services offshoring. But in India the rise in wages and real estate costs rapidly. Therefore, experts see ahead in the future diversification of online offshoring countries. Provides a country the necessary infrastructure and skilled workers, the growth in the field of online offshoring is likely in the near future.