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Definition

Offshoring

Offshoring increasingly plays a role in employers’ competitive strategies which means having local employees abroad do jobs that the firm's domestic employees previously did in-house. Offshoring is the exporting of jobs from developed countries to countries where labor and other costs are lower. 

Offshoring involved mostly lower skilled manufacturing jobs as, say, clothing manufacturers choose to assemble their garments abroad. Increasingly, however, employers- seeking to reduce costs and stay competitive- are offshoring thousands of higher skilled jobs, for instance, in financial jobs, legal, and security analysis.

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