Definition & Scope
Outsourcing and offshoring are related but distinct concepts. Outsourcing refers to delegating business functions to an external provider, which can be located in the same country or abroad. Offshoring specifically refers to relocating business operations or hiring workers in another country, regardless of whether a third-party provider is involved.
Why Companies Outsource
A company can outsource without offshoring (hiring a local agency) or offshore without outsourcing (setting up its own office abroad).