Offshored

The term 'offshored' refers to the practice of relocating business processes or services to a foreign country, typically to reduce costs, access skilled labor, or achieve specific operational benefits. This strategy is commonly utilized in manufacturing, IT services, and customer support to enhance efficiency and competitiveness in a global marketplace.

Offshored meaning with examples

• In an effort to cut costs, the company offshored its customer service department to a region known for its lower labor costs. This move not only reduced expenses but also allowed access to a broader talent pool, thus improving the quality of service provided to customers.
• Many tech firms have offshored software development to countries like India and China, attracted by a combination of highly skilled professionals and more affordable wages. Such practices enable these companies to remain competitive while still delivering high-quality products and services to their clients.
• During the annual review, the board of directors decided that offshoring some of their manufacturing processes would significantly increase profit margins. By shifting production overseas, the company expected to leverage decreased operational costs while maintaining product quality and meeting market demands.
• The company faced criticism after it offshored a significant number of jobs, which contributed to unemployment in its home country. However, management defended their decision, citing the need for cost-effectiveness and the importance of remaining viable in the increasingly competitive global economy.