People often wonder if global sourcing and outsourcing are the same things but do not seem to find a concrete answer. In the world of workforce management and recruitment, there is a plethora of terminologies that can indeed be confusing to some. When it comes to outsourcing and global sourcing service, it can be justifiably said that the two have differences from one another. In fact, global sourcing can be outsourced. To understand the terms better, one has to know what they mean separately.

What is outsourcing?

Outsourcing refers to the time when you want to outsource a whole operation or some parts of the operation to a third party. In terms of workforce, outsourcing comes in two types – business process outsourcing or statement of work and managed service programs or recruitment process outsourcing. Both serve the purpose of a third party taking over the responsibility of a function and handing it over only after completing it. Also, the third party might have the duty of managing the process and taking care of the recruitment. Because of its flexible nature, procurement outsourcing has become rather popular as businesses often resort to outsourcing to get certain projects done. Outsourcing strategies are inexpensive in comparison to having an in-house team for the same operation.

What is global sourcing?

When companies resort to a foreign land to get their products or services for the manufacturing process, that is termed global sourcing. There are often situations when the raw materials and labor available in one’s own country are available at a higher rate. But the same can be found in an Asian country at a much cheaper rate. This is when the company thinks of global sourcing in order to make a profit. From sourcing materials to skilled labor, a lot comes under the radar of global sourcing. Effective global sourcing strategies result in better access to skills and much lower labor costs. While global sourcing service surely consists of some risks, there are many benefits as well for which companies cannot ignore this process at the time of manufacturing.

The connection between global sourcing and outsourcing

There are certain differences between the two, but none can deny that they are connected and offer great benefits to an organization. Both serve a great purpose in enabling the company to make a huge profit. Take a look at the following advantages:

* Outsourcing will inevitably lead to reduced costs, be it in raw materials or in labor.
* Outsourcing talent and skills will ensure that your project gets done by an expert. This means that the end result will be nothing but the best. 

When you are looking for procurement outsourcing options, know that this is the best decision you can take for your organization. If you have a sound model in hand, no one can stop your company from reaching the zenith of success in a short time. Companies all across the world have resorted to both outsourcing and global sourcing for their manufacturing and have made a large-scale profit from it.

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