Which term describes relocating business processes and services to a lower-cost foreign location, especially for white-collar and professional work?

• A. Offshoring
• B. Outsourcing
• C. Reshoring
• D. Globalization

Answer: (A)

Offshoring means moving business processes and services to a foreign country to lower costs. This approach is popular for white-collar and professional work—like software development, finance, or analytics—because tasks can be done remotely while tapping into lower labor costs abroad. The core idea is the geographic shift to another country to achieve savings, not merely contracting with another company. Outsourcing, by contrast, is about hiring an external provider, which can be domestic or foreign. Reshoring is bringing work back home, and globalization is the broader trend of growing global interconnection that includes offshoring as a tactic.