Offshore, Offshoring and Outsourcing

What is offshore? Offshore means the geographic place or area that lies seaward of the coastline. In the similar manner offshoring means the relocation of business process to offshore country. Offshore country will be most probablally a overseas country. Currently offshore business process include manufacturing, production, software development, IT servicies and many other kind of works.

Offshore software development is the process in which some of full part of software development or maintaninance handed over to a company or firm in offshore country. Currently offshore software development is widely in demand in US and UK. In these countries the labour cost is very high that’s why the residential companies of these countries give software development work to other companies in india or other south asian countries. In south asian countries specially in India the labour cost is so cheap. That’s why the growth status of affshore companies in india is too good.

Offshoring is some times also called by name outsourcing but outsourcing and offshoring are quite different. In offshoring the business process is handed over to some offshore company ie the company in offshore country while outsourcing is simply handed over the business process to some other country weather it is in the country or outside country. Offshoring and outsourcing is similar when the business process handed over to offshore external company.