Offshoring

Offshoring is the relocation of business activities or production from one country to another, either within the same company or through an external provider. It can involve manufacturing, services, or both.

Foreign direct investment: Investment that gives a company lasting ownership or control of business operations in another country. Building or acquiring an overseas facility is one way to offshore activities within the same company.
Outsourcing: Contracting an activity to an external organization rather than performing it within the firm. Outsourcing changes who performs the work; offshoring changes which country it is performed in.
Business process outsourcing: The contracting of business functions, such as payroll or customer support, to an external service provider. Companies often offshore outsourced administrative functions to providers in other countries.
International trade: The exchange of goods and services between countries. Offshoring changes where production occurs and how cross-border trade is organized.
Supply chain resilience: The ability of a supply network to withstand disruptions and recover its operations. Concentrating production abroad can expose firms to distant disruptions and recovery delays.
Global value chain: The cross-border sequence of activities through which a product or service is designed, made, delivered, and supported. Offshoring relocates particular stages within these geographically distributed production networks.
Onshoring: Locating business activity within the same country as the company or its principal market. Onshoring keeps work domestic rather than relocating it abroad.
Call center: A facility or operation that handles customer or other telephone communications at scale. Customer-service call centers are a visible example of work relocated across borders.
Trade in tasks: Cross-border exchange of individual production tasks rather than only finished goods or whole industries. Offshoring makes particular stages of work tradable across national boundaries.
Geopolitical risk: The possibility that political events or decisions will disrupt economic activity or investment. Foreign operations can face policy changes, conflict, or strained international relations.

Linked from 12 pages