Why Do Companies Engage in Offshoring? 5 Strategic Motives
Offshoring is when companies transfer business activities or processes to a distant foreign country, usually a more affordable, developing nation. Companies can enter into an offshore outsourcing arrangement with a third party or set up their own offshore business operations. But why do companies engage in offshoring? Sure, affordability is a factor, but there are a few lesser-known reasons companies choose to offshore.