Strategically, why would a company choose offshoring over simple outsourcing?

• A. To gain operational flexibility and 24/7 support by leveraging different time zones while maintaining lower labor and infrastructure costs.
• B. To centralize operations in a single time zone.
• C. To maximize domestic jobs.
• D. To reduce training needs.

Answer: (A)

Offshoring is a location strategy that moves work to another country to take advantage of time-zone differences and cost structures. The big strategic benefit is enabling follow-the-sun operations—teams in different regions can hand off work to keep processes running almost continuously, which improves responsiveness and service levels. At the same time, it often reduces labor and infrastructure costs by accessing cheaper markets.

That combination—operational flexibility plus around-the-clock coverage while keeping costs down—best explains choosing offshoring over simple outsourcing. Centralizing in a single time zone would limit 24/7 capability; pursuing domestic job growth or expecting reduced training needs doesn’t align with offshoring, which typically involves coordinating across disparate locations and can require substantial onboarding for offshore teams.