The difference botween outsourcing and offshoring is: Ottshoring is aimed at expanding into new markets and capitalizing on economies of scope, whereas outsourcing is about reducing costs of production Outsourcing involves using other firms to perform activilies that used to be done in-house, whereas offshoring involves ahifting activilies to a fortign location Qutsourcing is a tool for firms to reduce costs, whereas offshoring is aimed at expanding the distribution channet Oltwhoring involves using other firms to perform activities that used to be done in-house, whereas outsourcing involves shifting activities to a foreign location