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A definition of outsourcing is to contract work to a third party, often overseas. However, I'm looking for a word that would describe "moving jobs within our company to a third-world nation such as India". Here's an example of a sentence describing the situation:

"We are looking to save money and can find much cheaper labor in India than
 we can in the USA. Because of this, we will be laying off 100 employees
 in our US office, opening a second office in India, and hiring 100 employees
 there."

Because the work is still being done within our company (and not a third party) I feel like the term outsourcing would not be correct for this. Is there another definition of outsourcing that would include the above situation? Or, is there a better word to describe this?

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"Offshoring" seems to be the term you're looking for here, "the practice of basing some of a company's processes or services overseas, so as to take advantage of lower costs."

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    This is true, but non-specialists (average people in the USA) use the word Outsourcing in both cases, because the job in the USA dries up, and a job in India is created, whether the job in India is working in an IBM office (if the US job was at IBM) or for a contractor of sub-contractor of IBM, the general sentiment and terminology of the US-side worker would still be the same. Perhaps from the perspective of the Indian IT sector person, the distinction and wording would make a difference. – Warren P Dec 13 '15 at 1:20

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