What is offshoring?
‘Offshoring’ refers to establishing a business or brand of business in another country to either gain the benefit of reduced salary and other costs or other benefits related to regulations.
Companies generally offshore specific parts of themselves in order to gain additional cost benefits. The most commonly offshored departments are IT, manufacturing, research and development and customer service.
Offshoring has garnered multiple criticisms due to the reduction in the number of local job opportunities that happen as well as the reduced economic benefits. Even in the other country, the company might be able to exploit the cheaper labour to make them work harder for lesser pay.