Business process offshoring, or also called outsourcing, is just another economic concept business people are expected to be in the know of. This trend in how companies produce goods or services has existed since decades gone by, but itâ€™s only now that itâ€™s in the limelight, because of increasing pressure from some sectors of western society for companies to stop trading goods and services with developing countries with lower labour costs. It is argued that the presence of low cost workers in other countries, along with cheap shipping costs, is killing local companies and putting locals out of work.
However, this very concept had been the brainchild of great European thinkers, who posited that the world is just one big market, with each country producing a good or service that it is at an advantage over other countries, depending on human, natural, capital, or intellectual resources. So in this case, if a certain country can produce a certain kind of good or service cheaper and more efficiently, then it is at an advantage over others where production cost is higher.