Mar
14
what is offshore?
Filed Under Offshore
what is offshore?
The term Offshore means relocation of business processes from one country to another or multi national. The term offshore also means business process such as production, manufacturing, or services. Multinational country can have an offshore bank account for cut down the transaction process, when production off shoring or services offshoe can cut down the cost of manufacturing products.
The well known example in China. China is the prominent destination for production offshore/ offshoring. After technical progress in VOIP (voice over ip telecommunications) improved the possibilities of trade in services, India became a country leader of offshoring/ offshore customer service provider for United States, Canada, Europe, Japan. Company like Dell, Microsoft, IBM’s is now providing offshore call centre from India
The economic logic of OFFSHORE is to reduce costs, increase profit margin. If one part of the world population can use some of their skills more productively and cheaply than others, those people have the comparative advantage. In that situation offshore became so popular.
