Outsourcing vs Offshoring: What’s the Difference and Why It Matters
In today’s global economy, businesses are always looking for ways to improve their operations, cut costs, and work more efficiently. Two common strategies to achieve these goals are outsourcing and offshoring. Even though people sometimes use these terms interchangeably, they mean different things and have different impacts on a company. Knowing the difference between outsourcing and offshoring is important for making smart decisions that fit your business goals. What is Outsourcing? Outsourcing refers to the practice of contracting out specific business tasks or functions to a third-party provider, often located in the same country or abroad. The goal is to leverage the expertise, infrastructure, or cost advantages offered by the external company. This allows businesses to focus on their core competencies while offloading non-core tasks such as IT support, customer service,…
