What does offshoring refer to?

Offshoring specifically refers to the transfer of jobs or business operations to another country, where tasks are performed in locations that typically provide a cost advantage, such as lower labor costs. This practice allows companies to reduce expenses, access new markets, and leverage specialized skills available in different regions.

In essence, offshoring goes beyond simply moving jobs; it often involves relocating entire business functions, such as customer service, manufacturing, or IT services. By taking advantage of the strategic benefits that different countries offer, businesses can improve efficiency and boost their competitive edge on a global scale.