In outsourcing terminology, what is meant by onshore outsourcing?

Difficulty: Easy

Correct Answer: Contracting business processes to a service provider located in the same country as the client organisation.

Explanation:


Introduction / Context:
Outsourcing can be classified as onshore, nearshore, or offshore based on the geographical relationship between the client and the service provider. This question focuses on the meaning of onshore outsourcing, which is important for understanding different delivery models used in call centre and business process outsourcing arrangements.


Given Data / Assumptions:
- A client organisation decides to outsource some of its business processes or customer service operations.
- The service provider may be located in the same country, a nearby country, or a distant foreign country.
- The question asks specifically about what onshore outsourcing means in this context.


Concept / Approach:
Onshore outsourcing refers to a situation where the client outsources work to a service provider that is based in the same country. For example, a company in India outsourcing call centre work to a vendor in another city within India would be onshore outsourcing. This model may simplify legal, regulatory, and time zone issues compared to offshore outsourcing, while still allowing the client to benefit from specialisation and cost efficiencies. The correct option must clearly describe this same country relationship.


Step-by-Step Solution:
Step 1: Look for an option that states the service provider is located in the same country as the client organisation. Step 2: Option A describes contracting business processes to a provider in the same country, matching the definition of onshore outsourcing. Step 3: Option B clearly describes offshore outsourcing, not onshore, so it is not correct for this question. Step 4: Options C and D refer to insourcing or temporary staff hiring, which are not standard definitions of onshore outsourcing.


Verification / Alternative check:
Industry literature and outsourcing agreements commonly use the term onshore to indicate that work is done inside the same national borders as the client, nearshore for neighbouring countries, and offshore for more distant locations. This terminology is used globally in call centre and BPO contracts and supports the wording of option A as the correct definition.


Why Other Options Are Wrong:
Option B describes offshore outsourcing, where work is moved to a distant foreign location, often with a different time zone. Option C describes bringing work back in house, which is the opposite of outsourcing and is sometimes called insourcing or backsourcing. Option D talks about hiring temporary staff in the client office, which may involve staffing agencies but is not the standard meaning of onshore outsourcing as a service delivery model.


Common Pitfalls:
Students sometimes confuse onshore and offshore because both involve external service providers. Another pitfall is to assume that any use of external staff inside the country is automatically onshore outsourcing, even when the staff are directly employed by the client. For exam purposes, remember that onshore outsourcing specifically means that the provider is a separate organisation located in the same country as the client, as stated in option A.


Final Answer:
The correct choice is Contracting business processes to a service provider located in the same country as the client organisation..

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