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The Risks Management in Offshore Outsourcing The most important thing is to find out if your offshore outsourcing provider is aware of these risks and has a plan to either mitigate it or eliminate it altogether. Overseas Sourcing As Strategic Business Solution Offshoring and outsourcing are the terms often misinterpreted to have the same meaning. But there is a slight demarcation between the two – The shifting of production, manufacturing or services to another country that offers better competitive advantages such as lower costs and fewer regulations is called Offshoring. Offshore Software Development Quality Often times, customer receives the application from the offshore provider which looks okay on the surface but is full of defects. What happens is the offshore team in order to meet the dates, skips the most important phase of the software project life cycle - Testing.