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

Obie16

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. 

Gaston

Isn't outsourcing connected with using 3rd party services and off-shoring is about keeping money in tax havens or something?

Obie16

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 Jacobh

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 Jones

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...

Lukejeff

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.

charu

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.

nadynn

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.

Mitchcarson

To me both words is similar and the aim also same. so nothing to differ. Thanks

mariamartinez

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

saravanan

Outsourcing is giving contract to a third party to perform a specific business function. It can be done both domestically and internationally. 
Offshoring means using a third party from distant, foreign countries to outsource business processes.

warnerjohn

Well Said! 

Anant_Maxi

Outsourcing : Means you will give your company's work to someone else (Be sure when you outsource software develpment  projects check their background & experience.)

Offshoring : shifting your business from one place to another. (You dont need to do this if you have a strong technical team  as they can manage most of the things with the help of technology)

Anant_Maxi

Outsourcing : Means you will give your company's work to someone else (Be sure when you outsource software develpment  projects check their background & experience.)

Offshoring : shifting your business from one place to another. (You dont need to do this if you have a strong technical team  as they can manage most of the things with the help of technology)

Blazho Gjorgiev

I totally agree with guys that they are entirely 2 different things.
Outsourcing means you borrow-outsource and offshore is point to some far remote place.

Nishant Sharma

Outsourcing refers to the general act of giving some task to a third party company.

Whereas Offshoring refers to giving the work to a company, which is usually far away & located in another country.

Based on the Location, there are Three Types of Outsourcing:

• Onshore Outsourcing - Working with a third party company located within your country.
• Nearshore Outsourcing - Working with a third party company located in a nearby country.
• Offshore Outsourcing - Working with a third party company located in a foreign country.