What term refers to the relocation of business processes or production to a lower-cost location within the same country?

The term that refers to the relocation of business processes or production to a lower-cost location within the same country is onshoring. Onshoring occurs when companies move their operations from higher-cost areas to lower-cost areas within the same national borders, often to improve efficiency, reduce costs, or take advantage of regional incentives. This practice can include moving manufacturing facilities, call centers, or other business operations to areas where labor, materials, or other operational costs are lower.

Outsourcing refers to transferring certain business functions to external suppliers, regardless of their location, while offshoring specifically means moving business processes to another country. Insourcing involves bringing operations that were previously outsourced back in-house. Understanding the distinctions between these terms is crucial for recognizing the various strategies companies use to optimize their operations in response to economic factors and market conditions.