First, let's understand the difference between offshoring and outsourcing, as these two terms are all too often confused. Outsourcing is the outsourcing of a process (e.g. software development) to an external service provider as a result of a make-or-buy decision. Offshoring, on the other hand, is the geographical relocation of a process to a country "beyond the coast" (offshore), typically India, Vietnam or Philippines; the legal entity providing the service (e.g. Software Development in a IT Development Center) can be provided by a subsidiary of the mother company - in this case it's about Offsoring, NOT outsourcing. However, if the Offshore Software Development is provided by a Third Party in India, then Offshoring and outsourcing coincide.
Author
Sebastian Zang
Sebastian Zang has cultivated a distinguished career in the IT industry, leading a wide range of software initiatives with a strong emphasis on automation and corporate growth. In his current role as Vice President Partners & Alliances at Beta Systems Software AG, he draws on his extensive expertise to spearhead global technological innovation. A graduate of Universität Passau, Sebastian brings a wealth of international experience, having worked across diverse markets and industries. In addition to his technical acumen, he is widely recognized for his thought leadership in areas such as automation, artificial intelligence, and business strategy.
