Offshoring on the other hand was the logical extension of outsourcing when the globalization wave hit the planet. When American IT companies found that costs could be further brought down by hiring Indian engineers on contract basis and getting them to the US on work visas, outsourcing acquired a new dimension with Indian companies too sharing the pie. However governments under pressure clamped down with restrictions on the number of work permits being handed out. This paved the way for offshoring to take over. Companies realized that offshoring was the way out. Completely award work to Indians and get them to work from their own country. This meant even higher savings. IT companies had tasted blood for the first time and more and more followed. And with media reports misquoting, the terms offshoring and outsourcing were both liberally used to refer to any work that was being sent out of the country. Now that definitely doesn't help matters, does it?
So when a company in America says its outsourcing work, it does not necessarily mean that it is sending work to India or any other place outside the country. Getting this notion clear would help blow clear the clouds of suspicion that start gathering in the minds of locals when a company in the developed world starts mentioning that it is looking at outsourcing as a means to cut costs.
Technorati Tags: Bush, America, Offshoring, outsourcing, globalization, IT, India