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Offshore Outsourcing

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ALSO CALLED: Outsourcing, Offshore, Global Sourcing, Offshore Development Services
DEFINITION: Offshore outsourcing, a type of business process outsourcing (BPO), is the exporting of IT-related work from the United States and other developed countries to areas of the world where there is both political stability and lower labor costs or tax savings. Outsourcing is an arrangement in which one company provides services for another company that could also be or usually have been provided in-house.  … 
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OFFSHORE OUTSOURCING DEFINITION (continued): …  Offshore simply means "any country other than your own." The Internet and high-speed Internet connections make it possible for outsourcing to be carried out anywhere in the world, a business trend economists call globalization. In general, domestic companies interested in offshore outsourcing are not only trying to save money in order to be more price-competitive against each other, but also to enable them to compete with businesses in other countries.Critics of offshore outsourcing worry that if too much IT-related work is farmed out to other countries, home-grown IT talent will "dry up." They … 
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