Offshoring refers to the practice of relocating business processes or services to another country, often to reduce costs and increase efficiency. Companies may choose to offshore various functions, such as manufacturing, customer service, or IT support, taking advantage of lower labor costs and specialized skills available in other regions. This strategy can lead to significant savings and allow businesses to focus on their core competencies. However, offshoring also presents challenges, including potential communication barriers and cultural differences. Companies must carefully weigh the benefits against the risks to ensure successful implementation of their offshoring initiatives.