What does offshoring in-house mean?

Offshoring in-house refers to the practice of conducting functions or activities within a company's own facilities located outside of the company's home country. This means that instead of relying on external vendors or contractors, the company uses its own employees and resources to manage operations in a foreign location.

This approach allows the company to maintain greater control over processes, quality, and strategic direction compared to outsourcing, where third-party vendors handle specific tasks. Operating in-house in a different country can also lead to cost savings through factors like lower labor costs and tax advantages, while still benefiting from proximity to new markets or resources.

Other options reflect different business strategies or definitions. Performing an activity domestically indicates keeping operations within the same country, which does not describe offshoring at all. Outsourcing to third-party vendors entails delegating work to external companies, which contrasts with the in-house nature of offshoring as it involves the company performing activities itself. Shifting production to another continent broadly refers to relocating manufacturing but does not specify the distinction of conducting activities in-house.