Offshoring Definition
Offshoring is the practice of contracting work to be performed by an outside party, typically in another country. The term is often used interchangeably with outsourcing, but there are some key differences between the two. Offshoring generally refers to the relocation of company operations or production, while outsourcing generally refers to the contracting of services.
There are many reasons why companies choose to offshore their operations. Cost savings is often a primary factor, as labor and other costs can be significantly lower in other countries. Additionally, offshoring can help companies tap into new markets and gain access to new talent pools. There are also risks associated with offshoring, such as cultural differences and language barriers.
