Offshoring is a business strategy that involves relocating a company's business processes, manufacturing operations, or services to another country, typically to take advantage of lower costs, such as cheaper labor, raw materials, or tax rates. This practice is particularly common in industries such as manufacturing, software development, customer service, and back-office support. Offshoring differs from outsourcing, which involves contracting work to external organizations, regardless of their location. The main drivers behind offshoring are cost reduction, access to specialized skills, and the ability to operate in different time zones, enabling 24/7 service. However, offshoring also presents challenges, such as cultural differences, communication barriers, and potential quality control issues. Additionally, offshoring has been a controversial topic, with concerns raised about job losses in the originating country and the potential exploitation of workers in the destination country. Despite these concerns, offshoring remains a significant trend in the global economy, with many companies leveraging it to maintain competitiveness and drive growth.
globalization, labor costs, outsourcing, global supply chain, business process, international trade
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