What is the Difference between Subcontracting Crowdsourcing Outsourcing and Offshoring
At present, doing business is not as easy as it was in the past. The reason is that, for growth of any business, it has become necessary to adopt modern strategies related to business. There are many different types of business strategies which are necessary to understand and adopt for a business person, if he want to lead its business towards progress and prosperity. Subcontracting, Crowdsourcing, Outsourcing and Offshoring are the names of some modern business terminologies. These terms look alike in the eyes of common people, but they are different from each other with respect to the meanings and stretegies. The difference between Subcontracting, Crowdsourcing, Outsourcing and Offshoring is as follows.
Subcontracting
Subtracting is a business term that has widely used all over the globe. An outside company or person is the key part of this business terminology and known as a subcontractor. Basically, this name of this terminology is borrowed from this outside company or person called subcontractor. In this process, a subcontractor takes some assigned task or a part of the task for the parent company under a contract or contractual agreement. It has become a routine of small companies to hire a subcontractor for fulfillment of an order or task under a contract.
Crowdsourcing
Crowdsourcing is the name of a business strategy which is executed by combining the efforts of a crowd either volunteers or part-time workers in obtaining required services or completion of an assigned task. Today, the trend of hiring online crowd or community is rising very much to practice the terminology known as crowdsourcing. The key feature of crowdsourcing is hiring an undefined group of people.
Outsourcing
Outsourcing is also a widely adopting business practice which includes both domestic and foreign contracting in which some employees and assets of a business are transferred to another business. In simple words, it is transferring the internal business process to another firm under a firm contract.
Offshoring
Offshoring is also a term related to transfer of business process but in this case the transferring process is involved between one country to another country. The business which could be transferred from one country to another could be manufacturing process, operational process or some supporting processes such as accounting.
Subcontracting vs Crowdsourcing vs Outsourcing vs Offshoring
The term subcontracting is entirely different from all other three terms which are Crowdsourcing, Outsourcing and Offshoring. In case of subcontracting, an outside person or company which is called subcontractor takes the hold of some a task from the parent company which actually have the right of compeltimg that parcticulartask, but this process of transferring rights is executed under a contract. The term crowdsourcing simply involves the group of outside people for the completion of an assigned task. Both outsourcing and offshoring are the business terminologies which state the condition in which business process or some tasks are transferred. But in case of outsourcing, this transferring procedure takes place between two firms rather than offshoring in which business processes are transferred from one country to another.
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