Difference Between Outsourcing & Offshoring

1
What Is the Difference Between Outsourcing and
Offshoring?
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2
Although outsourcing and offshoring may look
similar to you and, while they have some
matching properties, there are also some
differences between them. Lets check out those
differences one by one!
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3
Outsourcing, also known as subcontracting, is
the process of delegating non-core activities of
a business to an external business.

• On the other hand, offshoring is shifting of
  business processes or activities from the home
  country to another country.

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4
Outsourcing is done with the motive of freeing
up internal resources i.e. money, time and
manpower so that these could be better invested
in the core activities of the business. While
offshoring is done with the motive to enjoy
cheap resources of an overseas country so that
the organization's operating costs are reduced.
Usually, companies prefer to move their business
from a developed country to a developing country
to leverage cheap resources available there.
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5
Outsourcing can be done from the same country as
well as from across the border. This means it is
possible to outsource your companys work
without having to offshore it. On the other
hand, offshoring can be done only in the outside
country.
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6
Contrary to outsourcing, offshoring does not
necessarily mean that the job will be performed
by a third party. The company may decide to open
its new branch or factory in another country.
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7
Outsourcing tasks are done by non- employees
(virtual employees assigned to you by an
outsourcing company). On the other hand,
offshoring tasks are done by the employees of
the company.
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8
THANK YOU
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