Right-Shoring

A A A

DEFINITION

The placement of a business' components and processes in localities and countries that provide the best combination of cost and efficiency. Right-shoring does not require a company to move business processes overseas. Rather, it is a strategy in which a business analyzes the complexity and importance of required tasks and entrusts their completion with the most suitable workforce, regardless of location.



INVESTOPEDIA EXPLAINS

Right-shoring requires a business to maintain a balance between the work types that can be outsourced overseas and the ones that should be kept domestic. Commonly, less complex types of work and work that carries a lower level of importance can be shifted abroad, while complex and important types, or ones that require extensive customer interaction, are kept at home.




RELATED TERMS
  1. Fragmentation

    The use of different suppliers and component manufacturers in the production ...
  2. Insourcing

    Assigning a project to a person or department within the company instead of ...
  3. Expense

    1. The economic costs that a business incurs through its operations to earn ...
  4. Outsourcing

    A practice used by different companies to reduce costs by transferring portions ...
  5. Production Efficiency

    1. An economic level at which the economy can no longer produce additional amounts ...
  6. In-House

    Conducting an activity or operation within a company, instead of relying on ...
  7. Gray Market

    An unofficial market where securities are traded. Gray (or “grey”) market trading ...
  8. Supply Chain Finance

    A set of technology-based business and financing processes that link the various ...
  9. Articles Of Incorporation

    A set of documents filed with a government body to legally document the creation ...
  10. Operating Activities

    A company's typical daily processes that generate income. Operating activities ...
Related Articles
  1. Globalization: Progress Or Profiteering?
    Economics

    Globalization: Progress Or Profiteering?

  2. What Are Economies Of Scale?
    Economics

    What Are Economies Of Scale?

  3. Unions: Do They Help Or Hurt Workers?
    Economics

    Unions: Do They Help Or Hurt Workers?

  4. The Economics Of Labor Mobility
    Economics

    The Economics Of Labor Mobility

  5. The Lucrative World Of Third-Party Marketing
    Professionals

    The Lucrative World Of Third-Party Marketing

  6. Turn Your Passion Into A Profitable ...
    Entrepreneurship

    Turn Your Passion Into A Profitable ...

  7. Who are Venture Capitalists?
    Investing

    Who are Venture Capitalists?

  8. Vertical Integration
    Investing Basics

    Vertical Integration

  9. Business Cycle
    Economics

    Business Cycle

  10. Weighted Average Cost Of Capital (WACC)
    Investing

    Weighted Average Cost Of Capital (WACC)

comments powered by Disqus
Hot Definitions
  1. Cash and Carry Transaction

    A type of transaction in the futures market in which the cash or spot price of a commodity is below the futures contract price. Cash and carry transactions are considered arbitrage transactions.
  2. Amplitude

    The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).
  3. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  4. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  5. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  6. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
Trading Center