Definition

reshoring

Contributor(s): Rachel Lebeaux

Reshoring is the practice of bringing outsourced personnel and services back to the location from which they were originally offshored.

Many organizations initially pursue outsourcing arrangements, often overseas, in order to take advantage of reduced taxes, cheaper labor, a 24-hour-a-day workforce and the ability to hire employees with specialized skill sets in their own country of origin. IT and manufacturing are two areas that have undergone a great deal of outsourcing but are now seeing the reshoring of some of these jobs as part of a larger rightsourcing effort.

The recent movement toward reshoring typically stems from corporate concerns about operational challenges that have caused a decline in productivity and quality. In the United States, additional factors that encourage reshoring initiatives include an increase in wages overseas, improvements in domestic energy production, government incentives and the trend towards locating production closer to consumers.

See also: nearshore outsourcing, offshore outsourcing, domestic outsourcing, business process outsourcing

This was last updated in November 2012

Continue Reading About reshoring

Dig Deeper on Information technology outsourcing

PRO+

Content

Find more PRO+ content and other member only offers, here.

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

SearchHealthIT

SearchCloudComputing

SearchMobileComputing

SearchDataCenter

Close