Personal offshoring
Encyclopedia
Personal Offshoring or Smallsourcing is a business model where individual consumers or small businesses (often sole proprietorships) directly outsource
their work. It is a form of Offshoring
. According to the Wall Street Journal "[t]he approach relies on the same model that drives corporate outsourcing: labor arbitrage, or benefiting from the wage differential between U.S. workers and those in developing countries." It can potentially be a dangerous business model if not managed appropriately. Problems can include language barriers and communications issues due to differences in time zones.
Outsourcing
Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...
their work. It is a form of Offshoring
Offshoring
Offshoring describes the relocation by a company of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting. Even state governments employ offshoring...
. According to the Wall Street Journal "[t]he approach relies on the same model that drives corporate outsourcing: labor arbitrage, or benefiting from the wage differential between U.S. workers and those in developing countries." It can potentially be a dangerous business model if not managed appropriately. Problems can include language barriers and communications issues due to differences in time zones.