Offshoring

Offshoring is a business practice in which a company outsources its business processes or services to a third-party provider located in a foreign country, typically one with lower labor costs. Offshoring is commonly used by businesses to access specialized skills and expertise, reduce operational costs, and increase competitiveness in the global marketplace. Offshore outsourcing can encompass various functions, including information technology (IT), customer service, manufacturing, finance, and back-office operations. While offshoring offers cost-saving benefits, it can also present challenges such as cultural differences, language barriers, and geopolitical risks.