Offshoring is the practice of relocating business processes or services to another country, often to reduce costs. Companies may choose to offshore tasks such as manufacturing, customer service, or software development to take advantage of lower labor costs or specialized skills available in other regions. This strategy can help businesses increase efficiency and focus on core activities. However, offshoring can also lead to challenges, such as communication barriers and potential impacts on local employment. Companies must weigh the benefits against the risks when deciding to offshore certain functions or services.