Post by account_disabled on Dec 6, 2023 6:19:05 GMT -5
Offshoring vs inshoring. Which to choose?
Andy Nichols
Aug 4
Blog, Business
offshoring vs inshoring
What are offshoring and inshoring? Dynamic changes in the world B2B Email List economy and globalization processes affect the functioning of companies. Companies are increasingly deciding to expand to foreign markets, in search of cheaper labor and cheaper means of production. The decision to locate a company’s subsidiary abroad is associated not only with new opportunities to create sales of products and services but also with the search for new sources of material resources. A phenomenon directly related to these processes is offshoring, popular business practice understood as the transfer of selected functions or business processes to foreign markets. When the expansion does not bring the expected results and benefits, companies decide to return to the home country under the so-called inshoring.
How do you define offshoring and inshoring?
Offshoring vs inshoring. Which to choose?
Summary
How do you define offshoring and inshoring?
The phenomenon of offshoring was initiated in the United States in the late 1970s. One of the forerunners in this field was General Electric, which moved production overseas from the US. We can divide offshoring into two categories:
Nearshoring – Relocation of operations to neighboring countries, such as from Germany to Poland.
Farshoring – Relocation of operations to remote countries, such as from Europe to East Asia.
Offshoring is defined as the transfer of part of an enterprise’s activities in the field of services or production abroad, in order to reduce costs and improve the quality and increase the efficiency of the mechanisms implemented.
Andy Nichols
Aug 4
Blog, Business
offshoring vs inshoring
What are offshoring and inshoring? Dynamic changes in the world B2B Email List economy and globalization processes affect the functioning of companies. Companies are increasingly deciding to expand to foreign markets, in search of cheaper labor and cheaper means of production. The decision to locate a company’s subsidiary abroad is associated not only with new opportunities to create sales of products and services but also with the search for new sources of material resources. A phenomenon directly related to these processes is offshoring, popular business practice understood as the transfer of selected functions or business processes to foreign markets. When the expansion does not bring the expected results and benefits, companies decide to return to the home country under the so-called inshoring.
How do you define offshoring and inshoring?
Offshoring vs inshoring. Which to choose?
Summary
How do you define offshoring and inshoring?
The phenomenon of offshoring was initiated in the United States in the late 1970s. One of the forerunners in this field was General Electric, which moved production overseas from the US. We can divide offshoring into two categories:
Nearshoring – Relocation of operations to neighboring countries, such as from Germany to Poland.
Farshoring – Relocation of operations to remote countries, such as from Europe to East Asia.
Offshoring is defined as the transfer of part of an enterprise’s activities in the field of services or production abroad, in order to reduce costs and improve the quality and increase the efficiency of the mechanisms implemented.