BNET Business Dictionary
Business Definition for: Offshoring
- the transfer of service operations to foreign countries in order to take advantage of a supply of skilled but relatively cheap labor. Services may be outsourced to a foreign company or a wholly owned foreign subsidiary company may be established. The main benefit of offshoring is the reduction of costs but concerns about redundancies and job losses in the home countries have been raised.
Wiktionary Definition for: Offshoring
- The relocation of some of a company's production, services or jobs overseas in order to reduce costs.
Additional Resources
- Offshoring: General Equilibrium Effects On Wages, Production And Trade
- A simple model of offshoring is used to integrate the complex gallery of results that exist in the theoretical offshoring/fragmentation literature. The paper depicts offshoring as 'Shadow migration' and shows that this allows straightforward derivation of the general equilibrium effects on prices, wages, production and trade (necessary and sufficient conditions...
- White papers 2007-05-01
- Offshoring of Services: An Overview of the Issues
- Much attention has focused on the "Offshoring" of services to lower-wage locations abroad. Offshoring generally refers to an organization's purchase of goods or services from abroad that were previously produced domestically. This report: provides an overview of experts' views on the potential impacts of services offshoring, describes the types of...
- White papers 2005-11-01
- The Five Fallacies Of Automotive Offshoring
- The automotive industry is no stranger to offshoring. Offshoring practices, which began with the global sourcing of parts and components more than a decade ago, have expanded to include IT offshoring and are increasingly encompassing more and more of the value chain. Still, the offshoring of business processes and engineering...
- White papers 2006-10-01
- Exploding The Myths Of Offshoring
- Offshoring involves sub-letting non-core business activity or process to third party vendor located outside the borders of the host country. One of the hottest debated issues related to offshoring is the dearth of jobs that the offshoring approach is likely to create. The paper, however, argues that in the long-run,...
- White papers 2004-07-14
- Offshoring: Hidden Costs and Misconceptions
- Offshoring, or offshore outsourcing, is the practice of outsourcing business operations overseas or in a different country. In many industries, offshoring is used widely with varying degrees of success, for reducing labor costs and increasing productivity. The current upsurge of interest in business process outsourcing brings with it the common...
- White papers 2005-06-01
- Can Germany Win From Offshoring?
- European companies have joined the movement to offshore service jobs to low-wage nations. This paper analyzing the impact of offshoring on Germany, suggests that while companies enjoy enormous savings from offshoring, European economies could lose out rather than benefit from the practice unless they undertake structural reforms. This mixed outcome...
- White papers 2004-07-01
- Offshoring - What Is Offshoring?
- Offshoring simply means having the outsourced business functions done in another country. Frequently, work is offshored in order to reduce labor expenses. Other times, the reasons for offshoring are strategic - to enter new markets, to tap talent currently unavailable domestically or to overcome regulations that prevent specific activities domestically....
- White papers
- Service Offshoring, Productivity, And Employment: Evidence From The United States
- This paper estimates the effects of offshoring on productivity in U.S. manufacturing industries between 1992 and 2000, using instrumental variables estimation to address the potential endogeneity of offshoring. It finds that service offshoring has a significant positive effect on productivity in the US, accounting for around 11 percent of productivity...
- White papers 2005-12-01
- Offshoring Of Routine Tasks And (DE)Industrialisation: Threat Or Opportunity - And For Whom?
- Offshoring, or overseas sourcing of routine tasks, generates efficiency gains that benefit consumers and workers with skills similar to those whose very jobs are threatened by offshoring. Essentially, the interaction between offshoring, footloose capital and agglomeration economies locks the comparative advantage of advanced nations in complex or strategic functions while...
- White papers 2007-03-08
- An Enterprise Perspective Of Software Offshoring
- Enterprises engaged in software offshoring are reticent about their involvements. This paper presents a view of software offshoring from an enterprise perspective based on the author's extensive globalization experience. It addresses the wide spread fear of decline of software development in developed countries due to offshoring by presenting a case...
- White papers 2006-08-14
- Offshoring Is So Over
- Offshoring Is So OverRE: Offshoring Is So OverIndeed this was to be expected. Now that the euphoria of cheaper manufacturing costs have been slowly evoporating and with increased shipping cost, lower Dollar values, and cost of energy etc will convince the Offshoring Honchos to rethink.The technological breakthroughs attained in early...
- Discussion threads 2008-09-04
- Time to rethink offshoring?
- Changing economic conditions may have undermined some of the benefits of offshoring. For managers of global supply chains, this could be the time to reevaluate. The production of high-tech goods has moved steadily from the United States to Asia over the last decade. The reasons...
- Articles 2008-10-23
- Rising To The Offshoring Challenge - Part 2
- Offshoring is the practice of outsourcing business activities to providers overseas. The offshoring strategy is an effective tool for reducing costs and fuelling production efficiency. The supply chain of an organization plays an important role in the operationalization of the offshoring strategy. The paper examines issues involved in offshoring.
- White papers 2004-04-01
- Offshoring Doom And Gloom For U.S. Workers
- Offshore outsourcing involves giving the right of ownership of a business activity to a third party vendor located outside the borders of the host country. Therefore, offshoring signifies sending off local jobs to outside countries. The aforesaid activity has triggered of one of the hottest debates in the country today....
- White papers 2003-01-01
- Y2K and Offshoring: The Role of External Economies and Firm Heterogeneity
- The paper deals with a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in an industry. Also, the initial advantage of a country as a...
- White papers 2005-10-01
- How Offshoring of Services Could Benefit France
- Compared to the United States, United Kingdom, and Germany, offshoring of services is still a nascent phenomenon in France. Nevertheless, the trend is creating waves of anxiety among white-collar workers who fear losing their jobs to lower-priced labor abroad and sparking protectionist sentiment. The research in this paper shows that...
- White papers 2005-06-01
- The Utility of Offshoring: A Rawlsian Critique
- Most prominent arguments favoring the widespread discretionary business practice of sending jobs overseas, known as ?Offshoring?. It is argued that when business can be performed more cost-effectively off-shore, doing so tends, over the long-term, to achieve the greatest good for the greatest number. This claim is supported by evidence that...
- White papers 2005-05-08
- The Backlash: The Only Thing That Will Make the Furor Over Offshoring Worse Is Hiding From It
- Not since the North American Free Trade Agreement debate, when Ross Perot evoked the "Giant sucking sound" of U.S. jobs pouring into Mexico, has offshoring attracted so much angry attention. Today, the debate over the decision to outsource jobs to other nations has taken on the tenor of a crusade,...
- White papers 2004-06-07
- Second Duke/Archstone Consulting Study Reveals That FORTUNE 500 Companies Now View Offshoring as a Means to Drive Business Growth, Not Just Reduce Costs
- STAMFORD, Conn. -- Study Finds Corporations Turning to Offshoring for New Product Development, Research and Development and Qualified Personnel In addition to reducing expenses, FORTUNE 500 companies are turning to offshoring for new product development, research and development, and access to qualified personnel, according to the second Duke University...
- Research articles 2005-10-12
- The Risk Intelligent Approach To Outsourcing And Offshoring
- In recent years, many companies have increased their use of and dependence on Outsourcing and Offshoring (O/O). These arrangements present both risks and rewards to the organizations using them. But outsourcing and offshoring need not be a roll of the dice. There are steps you can take to minimize the...
- White papers 2008-02-12
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