Company	Contact
Alfreds Futterkiste	Maria Anders
Centro comercial Moctezuma	Francisco Chang
Ernst Handel	Roland Mendel
Island Trading	Helen Bennett
Laughing Bacchus Winecellars	Yoshi Tannamuri
Magazzini Alimentari Riuniti	Giovanni Rovelli

Aspect	Outsourcing	Offshoring
Definition	Delegating specific tasks to external vendors or service providers.	Relocating operations, processes, or functions to a foreign country.
Location	It can occur domestically or internationally.	It involves relocating operations to foreign countries.
Scope	Focuses on specific tasks or functions.	Involves broader operational or strategic decisions.
Ownership	External vendors or service providers perform tasks.	The company's subsidiaries or entities often manage operations.
Objective	We are streamlining operations, reducing costs, and accessing specialised expertise.	We leverage cost advantages, talent pools, or strategic benefits associated with foreign locations.

Aspect	Offshoring	Outsourcing	Employer of Record (EoR)
Definition	Offshoring refers to Relocating business processes and business operations to different country	Contracting out tasks or services to external vendors	Third-party assuming legal responsibilities as employer
Scope	Can involve various business functions including manufacturing, customer service, etc.	Can encompass a wide range of business activities	Primarily focuses on HR functions and employer responsibilities
Location	RInvolves moving operations to a foreign country	Can be onshore, nearshore, or offshore	Can be global, and usually involves multiple countries
Control	May result in reduced control over operations	Companies retain some control over outsourced tasks	Companies maintain control over strategic decisions
Cost Consideration	Often pursued cost savings through lower labour costs	Cost savings are a primary motivation	Costs incurred for compliance and administrative services
Legal Obligations	Companies may need to navigate foreign legal frameworks	Compliance with local labour laws and regulations	Assumes legal responsibilities as an employer in multiple jurisdictions
Risk Management	Risks related to geopolitical factors, quality control, etc.	Risks related to service quality, vendor performance, etc.	Mitigates employment-related risks and regulatory compliance
Flexibility	Provides flexibility to tap into global talent pools	Offers scalability and agility in responding to business needs	Allows for global workforce expansion with minimal legal setup