What does offshore outsourcing involve?

Offshore outsourcing specifically refers to the practice of hiring individuals or companies in another country to perform tasks or services. This approach is often used by businesses to reduce costs, access specialized skills, or remain competitive in the global market. By leveraging lower labor costs or unique expertise available abroad, companies can maximize efficiency and profitability.

This practice distinguishes itself from simply relocating a business, as it focuses specifically on outsourcing tasks rather than moving an entire operation to another location. While reducing the workforce in the home country could be a consequence of offshore outsourcing, it is not an inherent aspect of the process itself. Hiring local workers does not align with the definition of offshore outsourcing either, as it strictly involves engaging remote workers from outside the company's home country. Thus, the choice that accurately captures the essence of offshore outsourcing is hiring people in another country to perform various tasks.