Moneyzine
Contents
/Careers Guides/Onshoring (Homeshoring)

Onshoring (Homeshoring)

Moneyzine Editor
Author: 
Moneyzine Editor
1 mins
September 26th, 2023
Advertiser Disclosure

Definition

The term onshoring refers to the practice of assigning work previously performed in a foreign country to a domestically-located business operation. Onshoring is the opposite of offshoring, which is the practice of sending work traditionally performed domestically to an overseas service provider.

Explanation

Also known as homeshoring, onshoring is the practice of bringing work previously completed in an overseas nation back to domestic operations. Companies may decide to onshore work for a number of reasons; however, the primary driver is usually economic. Oftentimes the same business case that provided the rationale for offshoring the work will support the decision to bring it back onshore. Drivers for this decision usually include the relative cost of expenses such as labor, raw materials, and energy.

Politicians will also pressure companies to bring overseas jobs back home, since onshoring helps lower the domestic unemployment rate. Companies that are not satisfied with the quality of the work completed overseas may also decide to bring it back to a domestic location.

Onshoring is sometimes confused with the term insourcing, which is the practice of filling a job function, or assigning a project, to a person or department within the company. A business can onshore work, but not insource it. For example, a company's call center may have been located overseas. Management may decide they'd rather have the calls answered domestically, but can still outsource the work to another company.

Related Terms

Related Content

  • Is It Worth Pursuing a Master's Degree?
    In an era where education is synonymous with opportunity, many consider pursuing a Master's degree a surefire way to advance their careers. However, is it really the golden ticket to success we've been led to believe?
    November 18th, 2024
  • The gender pay gap, the persistent disparity in average earnings between men and women throughout their careers, serves as a critical measure of wage inequality. This gap underscores the ongoing issue of income disparity, despite the ideal of equal pay for equal work.
    March 14th, 2024
  • 7 Essential Financial Moves After Losing Your Job
    Navigating the stormy seas of job loss? You're not alone.
    November 18th, 2024
  • The Most In-Demand Skills to Get Hired in 2024
    Every job requires a combination of vital skills, but what skillset is valued most in 2024? As the job market evolves, staying ahead means it’s key to understand and acquire the skills that employers value most.
    April 12th, 2024
  • Key Productivity in the Workplace Statistics for 2024
    In 2023, global employee engagement saw a slight uptick, with 23% of employees engaged, up by two percentage points. However, a sizable 59% are categorized as disengaged, while actively disengaged employees, known as "loud quitting," declined to 18%. These figures highlight the persistent challenge for organizations to cultivate happiness and productivity in the workplace.
    January 31st, 2024

Contributors

Moneyzine Editor
The Moneyzine editorial team consists of writers and content specialists with diverse backgrounds.
Moneyzine 2024. All Rights Reserved.