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Is there a difference between "outsourcing" and "offshoring?"

Obie16Obie16 Michigan Posts: 21subscriber Bronze Level Member
I think one is more long-term and one more contract work or for certain tasks. Looking to get more insights on this. Please share your thoughts. 

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  • Obie16Obie16 Michigan Posts: 21subscriber Bronze Level Member
    edited June 26
    Could be! 

    I think at the most basic level, it is that outsourcing may be for a specific project, or task that business owners can't do themselves. So, that work is contracted out to somebody who may or may not be in the same country. Perhaps a company specializing in a certain area or a freelancer. Maybe like designing a logo or something along those lines. 

    I think offshoring is literally moving production out of your home country and manufacturing/working out of that country to save costs. 

    But that is about as far as my knowledge of it goes, so I was looking for more insights. 
  • Melvin JacobhMelvin Jacobh Posts: 20subscriber Bronze Level Member
    Yes you are right! There exists a difference! Outsourcing means you can get your work done by some one else. You will be paying for your tasks. Offshoring is the relocation of a business process from one country to another. I think outsourcing works well when we compare it to Offshoring.
  • Harriet JonesHarriet Jones Posts: 2subscriber Member
    Outsourcing and Offshoring are different. Outsourcing is delegating the work to someone while offshoring is like having the branch of the same company at a longer distance...
  • LukejeffLukejeff Posts: 8subscriber Member
    Outsourcing occurs when a company contracts a specific process out to a third party, finding someone who specializes in whatever needs to be done. Offshoring happens when businesses send in-house jobs overseas.
  • charucharu Posts: 25subscriber Bronze Level Member
    Hi,  What i know about it is that offshoring is for getting work done in different country and outsourcing simply refers to contracting work out to an external organization.
  • nadynnnadynn Posts: 18subscriber Bronze Level Member
    edited November 2

    I've read that outsourcing is delegating some part of the work to the third party company, while offshoring is shifting a portion of a business process to another country. There is also such a notion as "offshore outsourcing" that means which combines both outsourcing and offshoring.


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