Datamark Incorporated

®

FAQ

Posted On:

Nov. 02, 2011



To what “shores” can a business process be relocated? What are some of the pluses and minuses of each location?

We have found that our clients have different reasons for their choice of location, and many use a blend. Factors to be considered include your own clients' preferences, accessibility, skills required, cost management, mail dependence, etc.

Outsourcing to DATAMARK allows organizations to choose from a variety of locations to best meet their needs:

Onshore: The business process remains within the company’s country. Also known as domestic outsourcing, the location can be on-site at the company’s facilities or off-site in any community within the country.

Pluses

  • No concerns with language or cultural barriers
  • Better oversight and control of business process
  • Availability of high-skill workers
  • Close proximity makes communication, travel and shipping convenient and economical
  • Low risk of country’s political or financial instability

Minuses

  • Higher labor costs
  • Higher facility costs

Ruralshore: Ruralshoring is used to describe an onshore outsourcing arrangement that places the work in a rural or semi-urban community.

Pluses

  • Lower labor costs
  • No concerns with language or cultural barriers
  • Close proximity makes communication, travel and shipping convenient and economical
  • Low risk of country’s political or financial instability

Minuses

  • More training time may be required for lower-skill workers
  • Lower availability of facilities and infrastructure

Nearshore: The business process is located in a nearby country—Canada, Mexico or Brazil. Labor costs are often lower than onshore.

Pluses

  • Lower labor costs
  • Availability of bilingual, high-skill workforce
  • Close proximity makes communication, travel and shipping convenient and economical

Minuses

  • More training time may be required for lower-skill workers
  • More language or cultural barriers
  • Higher risk of country’s political risk or financial instability

Farshore: Also known as offshore outsourcing, the business process is located outside of the company’s country.

Pluses

  • Significantly lower labor costs
  • Availability of bilingual and high-skill workforce
  • Allows for first-shift processing 24/7

Minuses

  • More training time may be required for lower-skill workers
  • More language or cultural barriers
  • Higher risk of country’s political risk or financial instability
  • Communication, travel and shipping is less convenient and economical




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