In outsourcing terminology, what is meant by offshore outsourcing?

Introduction / Context:
Offshore outsourcing is a widely used model in the call centre and BPO industry. Companies in one country often outsource customer service, technical support, or back office functions to providers in another country that offers cost advantages or access to skilled labour. This question checks whether you understand the basic definition of offshore outsourcing in contrast to onshore arrangements.

Given Data / Assumptions:
- A client company is choosing between different locations for outsourcing time consuming processes.
- Service providers may be inside the same country or located abroad.
- The question focuses on what offshore outsourcing specifically means.

Concept / Approach:
Offshore outsourcing occurs when a company contracts work to a service provider based in a foreign country, typically with a significant geographical and time zone distance. For example, a company in the United States may outsource customer support to a call centre in India or the Philippines. The goals often include cost savings, round the clock coverage, and access to specialised talent. This is different from onshore outsourcing, where the provider is in the same country, or insourcing, where work is done internally.

Step-by-Step Solution:
Step 1: Look for an option that mentions a different country and possibly a different time zone for the service provider. Step 2: Option A describes contracting business processes to a service provider in a different country, often far away and in a different time zone, which fits the standard definition. Step 3: Option B clearly describes local outsourcing within the same city, which is not offshore. Step 4: Options C and D refer to internal staffing changes rather than outsourcing to foreign locations, so they are incorrect for offshore outsourcing.

Verification / Alternative check:
Industry reports frequently refer to offshore outsourcing hubs such as India, the Philippines, and Eastern Europe serving clients from North America, Western Europe, or other regions. These relationships involve cross border contracts, foreign exchange payments, and time zone management. This real world usage of the term offshore outsourcing confirms that option A accurately reflects the concept and therefore is the correct answer.

Why Other Options Are Wrong:
Option B describes outsourcing locally, which usually falls under onshore or domestic outsourcing, not offshore. Option C describes insourcing, where work is moved back inside the company, the opposite of outsourcing. Option D focuses on hiring temporary staff within the client office, often through staffing agencies, which is not offshore and may not even be considered outsourcing if the staff are directly managed by the company.

Common Pitfalls:
Learners sometimes confuse offshore with simply being outside the company, regardless of geography. Another pitfall is to think that any work done by third parties is offshore, even if the provider is in the same country. For exam purposes, always connect offshore outsourcing with foreign country service providers and cross border operations, which is clearly expressed in option A.

Final Answer:
The correct choice is Contracting business processes to a service provider located in a different country, often far away and in a different time zone..