What is Offshoring?
Offshoring refers to the movement of a business, which includes its processes, services, or production to a foreign country. The main reasons for which companies do this is to reduce cost, get access to specialized skills and increase productivity. Offshoring can involve a wide range of activities, such as customer support, software development, manufacturing, and other business functions. There is also a similar term used, “outsourcing”, which is not the same as “offshoring” because outsourcing means specific tasks of business are contracted to a third party other than the company, which could be done locally or abroad, but offshoring does not necessarily involves third party it involves setting company’s branch in another country.
Offshore: Benefits, Disadvantages and Types
Offshoring is a process of relocating the company to another country, usually to reduce costs. In today’s era, when businesses are expanding globally, it’s an important strategy. Because it helps businesses in many ways, like saving money and getting access to talented people from around the world. But a lot of complex difficulties also come along with it, like language barriers, quality control issues, different time zones, etc. This article will help in understanding the concept of offshoring, its working benefits and challenges.
Table of Content
- What is Offshoring?
- Benefits of Outsourcing
- Disadvantages of Offshoring
- What do you need to do before you Offshore?
- Types of Offshoring
- Conclusion