Outsourcing

Outsourcing is the process of hiring an outside firm to do work that was previously handled in-house. Services that are commonly outsourced include payroll, accounting, human resources, marketing and advertising, and manufacturing. Outsourcing can often save a company money, as a firm that specializes in providing the needed service may be able to do it more cheaply, or with higher quality. Outsourcing may also allow a company to turn more of its focus to its core business.

Offshoring

The term offshoring refers to outsourcing that involves hiring a company in another country. This has been a controversial topic in some countries, particularly the United States, because some workers whose jobs have moved overseas perceive that they have been "sold out" by their company.

Controversy over offshoring is also a part of the controversy over globalization. Many jobs that were formerly done in industrialized countries, especially in the manufacturing sector, are moving to developing countries, such as China or India. Some critics perceive that these low quality jobs destroy traditional cultures, or exploit workers in these countries. Supporters of offshoring contend that, even though they are low quality jobs, the may pay better than other jobs available, and help developing countries to industrialize themselves.