Offshore call centre Free Essay Example, 1500 words

1.4 Outsourcing vs. Offshoring Arguments in Favor of Offshoring. Numerous benefits have been identified to be related with firms’ decision to opt for offshore. In this regard, offshore outsourcing provides client firms with increased flexibility in alignment with the selection and switching amid the suppliers. Eventually, it adds to a firm’s capability to improve its competencies particularly related with innovation and strengthening R Bertrand & Mol, n.d. ). Innovation in the current business domain is ascertained to be an extremely important element for the success and growth of an organization. We will write a custom essay sample on Offshore call centre or any topic specifically for you Only $17.96 $11.86/pageorder now This creates a need for the firms to realize new capabilities that are not presently available within their internal capabilities, which can be achieved through offshore outsourcing. Knowledge sharing is also considered to have a positive impact on the performance of a business. Correspondingly, offshore outsourcing is further believed to facilitate an increased level of knowledge sharing, which in turn is expected to cultivate innovation, resulting in augmenting the efficiency of the client firms at large (Garcà ­a-Vega & Huergo, 2011). Arguments against Offshoring. Although offshore outsourcing is claimed to offer significant benefits to client firms, yet the establishment of offshoring business model can found to be accompanied with certain inherent risks. Notably, one of the prime risks associated with offshore outsourcing is primarily related with rigidness pertaining to alteration of the package of outsourced agreements. Another major risk associated with offshore outsourcing is related with the selection of suppliers. Besides, offshore outsourcing creates a requirement for the client firms to build financial models that addresses the issues pertaining to exchange rate fluctuations, interest rates, inflation rates as well as other treasury difficulties for eliminating any possible conflict or misunderstanding with the vendor firms.