Off-shoring

• What is off-shoring?

  Moving business production to another country
• What are the advantages of off-shoring?

  • Lower costs - especially labour and production
  • Access to skilled labour or resources not available in the domestic country
  • Closer to international customers - improves delivery
• What are the disadvantages of off-shoring?

  • Cultural and language barriers
  • Reputation risks - poor working conditions may harm brand image (CSR)
  • Potential loss of skilled employees in domestic country
• When is off-shoring most suitable?

  • Labour-intensive industries
  • When operating in price-sensitive markets (e.g. clothing)
  • When infrastructure in the foreign country is strong and reliable
• When is off-shoring not suitable?

  • Start-ups or small businesses may lack the resources to effectively manage an offshore team
  • Premium brands where quality and ethical sourcing matters
  • Where demand is unpredictable - long supply chains can't respond quickly