Offshore/outsourcing Flashcards
What are the differences between offshoring and outsourcing ?
Offshoring = the work is done overseas
Outsourcing = Someones else does the work
What is offshoring?
Offshoring involves the relocation of business activities from the home country to a different international location
What are the advantages of offshoring?
Manufacturing costs lower
Potentially better skilled and higher quality
Makes use of existing capacity overseas
Take advantage of free trade areas
What are the disadvantages of offshoring?
Longer lead times for supply
Implications for CSR
Additional management costs
Impact of exchange rates
Communication: language and time zones
What is reshoring?
Reshoring is the reverse of offshoring.
It involves the repatriation of business activities from overseas back to the home country
