General discussion

Locked

Consulting vs. Outsourcing

By rmg ·
What is the difference between consulting and outsourcing?

This conversation is currently closed to new comments.

8 total posts (Page 1 of 1)  
| Thread display: Collapse - | Expand +

All Comments

Collapse -

Consulting vs. Outsourcing

by opatzg In reply to Consulting vs. Outsourcin ...

consulting is offering your opinion, outsourcing is hiring someone else for their opinoin/services.
Outsourcing would be hiring consultants rather than using in house staff employees. It all depends on your use of the word "is". Commonly companies will outsource support for pc's and some applications. It's sometimes on a cost and materials basis with a stipend/retainer for services when needed and hourly charges for actual use. Outsourcing a programming project involves having an outside entity doing the programming for you, you can still oversee the requirements and set deadlines but you are relying on someone perhaps not even at your location or country for that matter. Consultants normally reside in your corporations but generallyare let go on the day the work is complete or after a training session to perform the knowledge transfer of what they did for you.

Collapse -

Consulting vs. Outsourcing

by rmg In reply to Consulting vs. Outsourcin ...

Poster rated this answer

Collapse -

Consulting vs. Outsourcing

by Ann777 In reply to Consulting vs. Outsourcin ...

I don't think there's any formal distinction between the two ...

Both ways:
1) people are paid for services rendered
2) people may reside within the company they "consult" or "outsource" for (or they may "reside" at an office and be sent to the second company)
3) people will receive their paycheck from the consulting company or the outsourcing company.
4) the company owning the consultant/outsource person will usually generate funds from a "contract" with the second company utililizing the first company's people.

Sometimes people who have the title "Consultant" operate their own business that they call themselves consultants. While people who are outsourced, generally do not call themsleves "Outsourced" and may indeed be called "consultant" as well.

Outsourcing implies a company that has a contract to provide a certain number of people to perform certain tasks for another company. Consulting implies person(s) hired to do a task (via contract) and bring input into the process and be able to adapt and change things. Usually outsourced people have to abide by very strict rules as to "limits."

I'll see if I can find anything written on the Net on this topic.

Collapse -

Consulting vs. Outsourcing

by Ann777 In reply to Consulting vs. Outsourcin ...

Intertesting....

Here's a direct quote :

"Outsourcing vs. Consulting

The difference here is both difficult and easy to see. The difficult part is that many firms simultaneously position themselves as offering consulting and outsourcing services, they don't clearly distinguish the two, and in the process they confuse the situation. It's easier when you think clearly about what the differences truly are. Consultants advise us on how to do something. Outsourcing providers actually do it. Sometimes a consultant will deliver a business service or product, and that's when they are acting like a provider, and other times an outsourcing provider will advise, but generally the distinction is easy to see. Most professional services firmsfall into one of three categories. There are the consultants. There are the providers. There are the hybrids. The reality is that many firms are both consultants and providers, but play different roles with different clients and at different times."

From: http://www.firmbuilder.com/articles/19/50/590/

---

So in reality, I suspect you need to specify clearly in your contract what you want the people to do.... and that chooses the terminology you'd use.

Read the article at the above link.... it's very interesting.

Collapse -

Consulting vs. Outsourcing

by rmg In reply to Consulting vs. Outsourcin ...

Poster rated this answer

Collapse -

Consulting vs. Outsourcing

by TheChas In reply to Consulting vs. Outsourcin ...

When you outsource an IT project, you hire a consultant.

When you outsource day to day IT support tasks, you hire a firm that provides "outsourcing services"

A consultant may even outsource some of the tasks of the project.

In a broader sense, you might hire a consulatant to help you decide if your firm would benefit from outsourcing your IT support tasks.

Chas

Collapse -

Consulting vs. Outsourcing

by rmg In reply to Consulting vs. Outsourcin ...

Poster rated this answer

Collapse -

Consulting vs. Outsourcing

by rmg In reply to Consulting vs. Outsourcin ...

This question was closed by the author

Back to Community Forum
8 total posts (Page 1 of 1)  

Related Discussions

Related Forums