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Offshoring is the relocation of a business process from one country to another - typically an operational process, such as manufacturing, or supporting processes, such as accounting. Typically this refers to a company business, although state governments may also employ offshoring. Outsourcing involves the contracting out of a business process and operational, and/or non-core functions to another party. Offshore outsourcing is the practice of hiring an external organization to perform some business functions in a country other than the one where the products or services are actually developed or manufactured