What is Offshoring?

Offshoring refers to the process of a company relocating one of its divisions overseas in order to take advantage of the wage difference paid in foreign countries. For example an American customer service representative may avergage $10 per hour but if a company offshores its customer service division to India, it may only have to pay the workers $2 per hour. Offshoring is responsible for job loss in America as well as poor customer service.