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

Obie16Obie16 Michigan Posts: 23subscriber 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. 

Best Answer


  • Obie16Obie16 Michigan Posts: 23subscriber Bronze Level Member
    edited June 2017
    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: 27subscriber 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 2017

    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.

  • MitchcarsonMitchcarson Posts: 3subscriber Member
    To me both words is similar and the aim also same. so nothing to differ. Thanks
  • mariamartinezmariamartinez Posts: 2subscriber Member
    Both Outsourcing and offshoring are different from each other.
    The term ‘outsourcing’ simply refers to contracting an outside agency or service provider for carrying out those office tasks and functions for which you either lack in-house expertise or the time and resources. 

    Offshoring specifically implies physically shifting a portion of the business processes to a different country altogether.
    For more info, visit blog- www.virtualemployee.com/blog/what-is-the-difference-between-outsourcing-offshoring-and-offshore-outsourcing
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