|Book Edition||12th Edition|
Both of offshoring and outsourcing ultimately save companies money but they reduce costs in very different ways.
Outsourcing is when a company negotiates a contract with a third party to perform a specific function. When outsourcing a process or operation, it is vital to find a company or person that specializes in the task at hand
Example:- Suppose you want to make a software but your business does not work in technology field so you will go to any third party organization to make software for yo and you will pay for that.
Offshoring is when a company sends in-house jobs to be performed in another country. An example of offshoring is for a United States based company to produce their goods in India.
Example:- Suppose you want to make a software and you are a technology company which has lots of branches all over the world. So suppose you want an software in New York and you have another branch in India so you have assigned that task to indian people that work into your company