Different Types of Outsourcing Models - Location-based

Posted by Jan Victor Valencia
Nov 04, 2020
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It is a common knowledge that outsourcing involves getting an outside help to focus more on your core business operations. However, once you understand the different  types of outsourcing models, you can better hire the outsourced service that best fits your requirements.


Location-based Outsourcing

This outsourcing business model focuses on the relative distance between you and your chosen service provider.

  • Onsite Outsourcing

This means having your outsourced team reporting in your office working with the in-house employees to speed up their learning of your processes and system in place.

You can easily manage your contracted team with onsite outsourcing since they are working with you physically. 

  • Onshore Outsourcing

Onshore outsourcing is contracting your functions to a third-party within the same state or country. This works best for entities in the similar state because engagement barriers are kept to a minimum.

  • Nearshore Outsourcing

If you’re looking for a more affordable cost, looking for an outsourcing partner outside your country can be a solution.

Nearshore outsourcing hires partners among the company’s neighboring countries that are most likely within the same time zone.  

  • Offshore Outsourcing

Offshore outsourcing is the opposite of nearshore outsourcing since it wanders to a far more distant location to get the right service provider.

Offshore outsourcing mostly attracts nations who have high labor costs and are aiming for  lower prices without sacrificing the quality of the services they are paying for.

Getting a comprehensive look at the different types of outsourcing models can greatly boost your engagement’s performance and dictate how the relationship will grow over time. Make sure to carefully study which best compliments your processes to get the best results as possible.

In need of an outsourcing partner that accurately performs your desired service? With D&V Philippines, we make sure to attend to our client’s requirements. Our outsourced bookkeeping services are being taken care of by our finance and accounting experts who have a broad expertise in accounting and compliance.

Download our Outsourcing: How to Make it Work guide today to learn how we can be your reliable outsourcing partner and how we can make the most out of the engagement.

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Our Outsourcing: How to Make it Work guide explores how you can utilize accounting and finance outsourcing to drive growth to your business and add value to your processes.