There is a distinct difference between outsourcing and offshoring. Outsourcing refers to an organization that contracts certain segments of their business to a third party. For example, an organization may outsource work to perform environmental studies, review contracts, or even customer service. Offshoring refers to the practice of hiring a vendor to do the work offshore. Organizations may take this route because costs are cheaper to do it offshore or regulations are more ...
This solution explores the concepts of outsourcing and offshoring. It provides an overview of the risks, criticisms, and benefits associated with each concept.