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Offshoring relates to moving a business process by a company from one country to another. Examples of such business processes include human resources, manufacturing, software development or accounting. Outsourcing, on the other hand, relates to the movement of internal business processes to an external company within the same country. As such, a company moving a business unit to a different company in another country would be both outsourcing and offshoring.

Examples include a bank with a check clearing unit having it outsourced to India from United States and a garment manufacturer with a manufacturing facility in United States having it outsourced to China. One type of outshoots of outsourcing business models is the Shared Service Center (SSC), or rather “insourcing.”

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