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Outsourcing: Offshore vs. Domestic


You know, you would think with the articles I write with “vs.” in the title, I like controversy. Ironically, I don’t; I avoid confrontation when I can.  It is “life” however, and we may as well discuss it; and deal with it.

I received an email from a prospect today (mid July 2010) and the comment was “the CEO would probably like to stay within our state; but we will keep you in mind”, etc.  They are really nice sincere people, and I wrote back with the usual; “I understand, but it will cost you”.  (I said it more professional, but that’s the essence.)  I also made the comment that this issue does not come up very often, which is true.  Given the stigma, the politics, and the news associated with this issue; one might think it would.  My “off the cuff” assertion was that “savings trumps PR”, but it did get me thinking and doing a little research.

As always a Google search turned up a lot; ranging from the very scholarly white paper (written in 2003): Onshore Versus Offshore Outsourcing: Significant differences require unique approaches to Wikipedia’s objective treatise of “There are different views on the impact on the various societies affected, which reflects the attitude of Protectionism versus Free Trade. Some see it as a potential threat to the domestic job market…, while others, including the countries who receive the work, see it as an opportunity.”

The literature (in general), notes that sending work offshore is less expensive; and then also the usual discussion of potential offsetting issues in quality and communication; along with jobs (in both countries), and the overall global view of things.

I noted above that this issue does not come up with prospects as often as one might think.  It is possible (even probable) this is due to how MOS handles the situation.  We believe we have hit the “sweet spot” and/or the best of both worlds, by providing offshore production, but handling all the liaison, support, communication with offshore, monitoring of results, etc. “domestically”.  From our headquarters in Tulsa, Oklahoma, (from the heartland no less) to all our management, ownership, registration, support, etc. being located in the US; we can offer good results for less.

From our standard introduction in proposals: “To provide a value added solution, we realize we must be able to provide you not only with quality service, but with improved cash flow and cost savings.  We do this by utilizing international resources; that we have fully qualified to provide quality and efficient service.  This generally allows the devotion of more personnel for more hours to any given project due to lower operating costs.  We are constantly researching and vetting these resources to better serve our clients.  These resources are fully trained and knowledgeable to produce the desired result.”

One comment and quote on the Global Economy.  While published originally in 2005, Thomas Friedman’s ground breaking book; The World is Flat, in our opinion is even more relevant today, and it only continues to grow.  One cannot listen to any business news without hearing about China, Japan, India, and much more.  The global financial “crisis” it seems may affect us all.  Our business is positioned to take advantage of this global economy; which we can pass on to our clients.  One can find articles, white papers, etc on how this is good for the US, due to saving businesses money, increasing the overall work pool talent, etc, but for now, we think it simply is good business.

In a bit more “educated” way of saying this, the New York Times, in reviewing “The World is Flat” said:  For Friedman, cheap, ubiquitous telecommunications have finally obliterated all impediments to international competition, and the dawning ‘flat world’ is a jungle pitting ‘lions’ and ‘gazelles,’ where ‘economic stability is not going to be a feature’ and ‘the weak will fall farther behind.’ Rugged, adaptable entrepreneurs, by contrast, will be empowered.

We do hope MOS is positioned as a “rugged, adaptable entrepreneur; and we do so on a global basis.  We also make total use of “cheap, ubiquitous telecommunications” by extensive use of the internet, on a global basis.  I love saying to an office manager; “yes, we will work right on your software, as if we were sitting right there in your office”.  I can say that with all confidence, even though the “worker” might be 10,000 miles away.  Ain’t it awesome?

So, which is it, offshore or domestic?   We think some of both.  MOS is based in the heartland of America; with owners and managers rooted here, and with every desire to help other US businesses.  At the same time, we work with “rugged entrepreneurs” all over the world; all focused on providing economical and effective results for each client, each project, each individual we can; while still putting food on the table for our families.  Check us out.

Thanks for “listening”.

About Julie Clements

Julie Clements

Joined the MOS team in March of 2008. Julie Clements has background in the healthcare staffing arena; as well as 6 years as Director of Sales and Marketing at a 4 star resort. Julie was instrumental in the creation of the medical record review division (and new web site); and has especially grown this division along with data conversion of all kinds.