“Offshoring” and “outsourcing” are often used as if they mean the same thing. They don't, and the distinction matters when you're deciding how to get work done.
What outsourcing means
Outsourcing is handing a function to an external provider who does it their way, on their systems, with their people. You buy an outcome — “do our payroll” — and the provider decides how. You get the result but little control over the how or the who.
What offshoring means
Offshoring simply means the work is done in another country. You can offshore by outsourcing (hand it to an overseas provider) or by employing people directly overseas. Offshoring is about location; outsourcing is about ownership.
The dedicated-staff model: offshoring without outsourcing
There's a third way that combines the best of both: a dedicated offshore employee who works in your systems, to your process, as part of your team — offshore location, but you keep full control of the work and the person. It's offshoring without surrendering ownership the way outsourcing does.
Which gives you more control
Outsourcing trades control for convenience. The dedicated offshore model keeps the cost advantage of offshore while giving you the control of a direct hire — which is why so many businesses now prefer it for ongoing roles over traditional outsourcing.
See what a dedicated hire would cost you
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