Offshoring refers to the practice of a company or organization relocating its business operations, such as manufacturing, services, or support functions, to a foreign country. This is often done in order to take advantage of lower labor costs, tax incentives, or other benefits offered by the foreign country. Offshoring can involve either setting up a new facility in the foreign country or outsourcing the work to a third-party company located in that country. It is a strategic decision made by a company to improve its competitiveness and profitability. Offshoring can also refer to the relocation of jobs from one region or country to another, which can have significant economic and social impacts. This term is often used interchangeably with outsourcing, but offshoring specifically refers to the relocation of operations to a foreign country, while outsourcing can involve the use of domestic or foreign companies. Offshoring has become increasingly common in the globalized economy, but it can also be a controversial practice due to its potential impact on domestic job markets and the exploitation of cheap labor in developing countries.
