offshoring
OFF-shor-ing
/ˌɔːfˈʃɔːrɪŋ/
The practice of basing some of a company's processes or services overseas, so as to take advantage of lower costs.
Focuses on where the work is done (on another shore). A company can offshore its own factory (not outsourcing) or offshore to an external firm (outsourcing).
The story behind the word. A term that gained popularity in the 1990s as globalization accelerated. It literally means moving work 'off' the current 'shore' to another country.
Word relationships
- relocation: Relocation is general; offshoring is specifically moving to a foreign country.
- reshoring: Bringing production back to the home country.
Commonly confused with
- outsourcing: Offshoring is about geography; outsourcing is about ownership of the process.
Word family
- offshore (verb/adjective): To move a business process abroad.
Collocations
- offshoring jobs
- offshoring strategy
- massive offshoring
Example sentences
- "The offshoring of textile production has led to the decline of many factory towns in New England." Manufacturing
- "Offshoring is often criticized for taking jobs away from the domestic workforce." Economics
Memory hook
Moving the work to a different 'Shore'. Different shore.
When not to use
Don't use if the company is just opening a sales office abroad; it usually refers to production or back-office tasks.
Fun facts
- India and the Philippines are the two most popular destinations for offshoring business processes like call centers and IT support.
Related words
Explore more words
outsourcing, supply chain, plagiarism, warehousing, remote, manufacturing
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