Offshore outsourcing encompasses manufacturing, IT, and back-office services. Business process outsourcing includes call centers, finance and accounting, human resources, and transaction processing.
Offshoring refers to taking advantage of lower-cost labor in another country. A common misconception is that all offshoring involves outsourcing. This is not true. While outsourced processes are handed off to third-party vendors, offshored processes can be handed off to third-party vendors or remain in-house. The definition of offshoring includes organizations that build dedicated captive centers of their own in remote, lower-cost locations.
