The skinny on outsourcing buzz words

Offshoring, Homeshoring… Seems like these days you can add -shoring to anything and make it a buzz word. But what do all of these terms mean? Here’s our little guide to the world of remote work:

Outsourcing – Asking an expert (or a firm with experts) outside of your company to do something for you more efficiently and in a more cost-effective way than if you were doing it yourself. Companies outsource all sorts of tasks, from software development to network administration to graphic design. But outsourcing isn’t limited to business tasks — my personal favorite is the guy who outsourced his dating life.

Should you do it? Perhaps you’re thinking about redesigning your website. Could someone with more technical expertise do it better?

Offshoring — Essentially the same thing as outsourcing, except that this refers to when the work or product is done by someone in another country. But Thomas Friedman would agree, if someone can get quality work done better and faster, it doesn’t matter whether they’re in Minnesota or Moldova.

Should you do it? Establishing a clear communications strategy is the best way to ensure your offshored projects will be successful. You’ll have to consider time zone, language, and cultural differences.

Nearshoring — Much like offshoring, but instead of outsourcing to people anywhere in the world, outsourcing to people who are working nearby (in a nearby country, for instance). Some companies want to work with providers who have a similar culture, share a similar language or are in the same time zone.

Should you do it? Depends. If working with someone in the same time zone is essential, this might be the thing for you.

Homeshoring — Outsourcing your work to someone within your own country. People prefer working from home for a variety of reasons. Some want to avoid commuting, others have children they’re taking care of at home. Companies such as Jet Blue became well-known for their homeshoring strategies, but you don’t have to be a big corporation to take advantage of skilled workers who prefer to work from home.

Should you do it? Need someone in your timezone? Country? Can you deal with a flexible schedule?

Crowdsourcing — Ah, the power of the crowd. Why use one mind when you can use many? Essentially, this refers to having a crowd of people work together to produce a product. A great example: Wikipedia.

Should you do it? Netflix did. They posted a $1M prize for anyone who could improve their DVD rental system. Cons? You can’t have everyone sign a contract or an NDA.

Farmshoring – Moving jobs from urban centers to rural communities.

Should you do it? We believe it doesn’t matter where you work, but whether you have (a) the skills to do it (b) the tools to do it (c) the motivation to do it.