Offshoring is a term used to move the company activities abroad (to another country) for costs reasons. It means relocation of either some processes or the whole company.
What is offshoring in practice for?
Offshoring is used either to move production abroad where costs (typically costs of labour) are lower (such as a subsidiary) or to move (or establish) parent company to a state with lower taxes (see tax optimization). Use of offshoring structures is in this case part of tax optimization.