The term ‘offshoring’ gained prominence in the 90s for businesses around the world. The term ‘offshore outsourcing’ was first used in 1937 by Ronald Coase, an economist in a published paper that described this form of organizing business. A couple of years ago, outsourcing business activities were rare; today they are an integral part of most businesses with an international presence.
As per a recent report cited by researchers, approximately 80% of Europeans and US firms ranked India as their most preferred outsourcing destination. On the other hand, Global Sourcing Association (GSA) named Ukraine as the Outsourcing Destination of the Year in 2017.
Offshoring or outsourcing is a strategic move for many reasons including (but not limited to) fewer stringent labor regulations and proximity to raw materials not available in the home country. Here are some more reasons to opt for offshoring of your operations:
Another difference is personal space expectations. While it is common to see Japanese bowing at the beginning and end of business interaction, it is not unusual to see female Russian colleagues walking hand in hand with each other on their first meeting. Cultivating cultural understanding is key to overcome any such hurdles and differences.