What is Offshoring?
Offshoring – the relocation of a business process from one country to another. Usually done by companies from industrialized countries to less developed countries with the intention of reducing the cost of doing business.
Outsourcing – the transfer of the management and/or day-to-day execution of an entire business process to an external company. This service provider could be in the same building or in another country.
Outsourcing is convenient for dealing with short term problems or problems outside your core competency. Outsource tasks that don’t contribute to the bottom line or the long-term strategy of the company.