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In 2014, the RSA Insurance Group completed a move of call centres back to Britain.
The call centre industry in India has been hit by reshoring, as businesses including British Telecom, Santander UK and Aviva all announced they would move operations back to Britain in order to boost the economy and regain customer satisfaction.
Product design, research and the development (R&D) process is relatively difficult to offshore because R&D, to improve products and create new reference designs, requires a higher skill set not associated with cheap labor.
An abstract of a study published 2019, which did not include either India or China, and did not specify whether the offshoring was also outsourcing, said "that R&D offshoring contributes positively to productivity in the home country.
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There is a relationship between offshoring and patent-system strength.
Companies under a strong patent system are not afraid to move work offshore because their work will remain their property.
Conversely, companies in countries with weak patent systems have an increased fear of intellectual property theft from foreign vendors or workers, and, therefore, have less offshoring.
Offshoring is often enabled by the transfer of valuable information to the offshore site.
Such information and training enables the remote workers to produce results of comparable value previously produced by internal employees.
When such transfer includes protected materials, as confidential documents and trade secrets, protected by non-disclosure agreements, then intellectual property has been transferred or exported.
The documentation and valuation of such exports is quite difficult, but should be considered since it comprises items that may be regulated or taxable.
Offshoring to foreign subsidiaries has been a controversial issue spurring heated debates among economists.
Jobs go to the destination country and lower cost of goods and services to the origin country.
On the other hand, job losses and wage erosion in developed countries have sparked opposition.
Free trade with low-wage countries is win-lose for many employees who find their jobs offshored or with stagnating wages.
Currency manipulation by governments and their central banks cause differences in labor cost.
On May 1, 2002, Economist and former Ambassador Ernest H. Preeg testified before the Senate committee on Banking, Housing, and Urban Affairs that China, for instance, pegs its currency to the dollar at a sub-par value in violation of Article IV of the International Monetary Fund Articles of Agreement which state that no nation shall manipulate its currency to gain a market advantage.
In 2015, IT employment in the United States has recently reached pre-2001 levels and has been rising since.
The number of jobs lost to offshoring is less than 1 percent of the total US labor market.
According to a study by the Heritage foundation, outsourcing represents a very small proportion of jobs lost in the US.
The total number of jobs lost to offshoring, both manufacturing and technical represent only 4 percent of the total jobs lost in the US.
Major reasons for cutting jobs are from contract completion and downsizing.
Some economists and commentators claim that the offshoring phenomenon is way overblown.
"The Economist" reported in January 2013 that: "High levels of unemployment in Western countries after the 2007-2008 financial crisis have made the public in many countries so hostile towards offshoring that many companies are now reluctant to engage in it."
Economist Paul Krugman wrote in 2007 that while free trade among high-wage countries is viewed as win-win, free trade with low-wage countries is win-lose for many employees who find their jobs offshored or with stagnating wages.
Two estimates of the impact of offshoring on U.S. jobs were between 150,000 and 300,000 per year from 2004-2015.
This represents 10-15% of U.S. job creation.
The increased safety net costs of the unemployed may be absorbed by the government (taxpayers) in the high-cost country or by the company doing the offshoring.
Europe experienced less offshoring than the U.S. due to policies that applied more costs to corporations and cultural barriers.
In the area of service research has found that offshoring has mixed effects on wages and employment.
The World Bank's 2019 World Development Report on the future of work highlights how offshoring can shape the demand for skills in receiving countries and explores how increasing automation can lead to reshoring of production in some cases.
U.S. opinion polls indicate that between 76-95% of Americans surveyed agreed that "outsourcing of production and manufacturing work to foreign countries is a reason the U.S. economy is struggling and more people aren't being hired."
According to classical economics, the three factors of production are land, labor, and capital.
Offshoring relies heavily on the mobility of labor and capital; land has little or no mobility potential.
In microeconomics, working capital funds the initial costs of offshoring.
If the state heavily regulates how a corporation can spend its working capital, it will not be able to offshore its operations.
For the same reason the macroeconomy must be free for offshoring to succeed.
Computers and the Internet made work in the services industry electronically portable.
Most theories that argue offshoring eventually benefits domestic workers assume that those workers will be able to obtain new jobs, even if by accepting lower salaries or by retraining themselves in a new field.
Foreign workers benefit from new jobs and higher wages when the work moves to them.
Labor scholars argue that global labor arbitrage leads to unethical practices, connected to exploitation of workers, eroding work conditions and decreasing job security.
In the developed world, moving manufacturing jobs out of the country dates to at least the 1960s while moving knowledge service jobs offshore dates to the 1970s and has continued since then.
It was characterized primarily by the transferring of factories from the developed to the developing world.
This offshoring and closing of factories has caused a structural change in the developed world from an industrial to a post-industrial service society.
During the 20th century, the decreasing costs of transportation and communication crossed with great disparities on pay rates made increased offshoring from wealthier countries to less wealthy countries financially feasible for many companies.
Further, the growth of the Internet, particularly fiber-optic intercontinental long haul capacity, and the World Wide Web reduced "transportation" costs for many kinds of information work to near zero.
Regardless of size, companies benefit from accessibility to labor resources across the world.
This gave rise to business models such as Remote In-Sourcing that allow companies to tap into resources found abroad, without losing control over security of product quality.
New categories of work such as call centres, computer programming, reading medical data such as X-rays and magnetic resonance imaging, medical transcription, income tax preparation, and title searching are being offshored.
Before the 1990s, Ireland was one of the poorest countries in the EU.
Because of Ireland's relatively low corporate tax rates, US companies began offshoring of software, electronic, and pharmaceutical intellectual property to Ireland for export.
This helped create a high-tech "boom" and which led to Ireland becoming one of the richest EU countries.
In 1994 the North American Free Trade Agreement (NAFTA) went into effect, and it increased the velocity of physical restructuring.
The plan to create free trade areas (such as Free Trade Area of the Americas) has not yet been successful.
In 2005, offshoring of skilled work, also referred to as knowledge work, dramatically increased from the US, which fed the growing worries about threats of job loss.
There are four basic types of offshore outsourcing:
The general criteria for a job to be offshore-able are:
The opposing sides regarding offshoring, outsourcing, and offshore outsourcing are those seeking government intervention and Protectionism versus the side advocating Free Trade.
Jobs formerly held by U.S. workers have been lost, even as underdeveloped countries such as Brazil and Turkey flourish.
Free-trade advocates suggest economies as a whole will obtain a net benefit from labor offshoring, but it is unclear if the displaced receive a net benefit.
Some wages overseas are rising.
A study by the U.S. Bureau of Labor Statistics found that Chinese wages were almost tripled in the seven years following 2002.
Research suggests that these wage increases could redirect some offshoring elsewhere.
Increased training and education has been advocated to offset trade-related displacements, but it is no longer a comparative advantage of high-wage nations because education costs are lower in low-wage countries.
By sector:
Pula Arena
The Pula Arena (, ) is the name of the amphitheatre located in Pula, Croatia.
The Arena is the only remaining Roman amphitheatre to have four side towers and with all three Roman architectural orders entirely preserved.
It was constructed in 27 BC – 68 AD and is among the world's six largest surviving Roman arenas.
A rare example among the 200 surviving Roman amphitheatres, it is also the best preserved ancient monument in Croatia; however, the arena is not listed on UNESCO world heritage list.
The amphitheatre is depicted on the reverse of the Croatian 10 kuna banknote, issued in 1993, 1995, 2001 and 2004.
The exterior wall is constructed in limestone.
The part facing the sea consists of three stories, while the other part has only two stories since the amphitheatre was built on a slope.
The maximum height of the exterior wall is .
The first two floors have each 72 arches, while the top floor consists of 64 rectangular openings.
The axes of the elliptical amphitheatre are long, and the walls stand high.
It could accommodate 23,000 spectators in the cavea, which had forty steps divided into two "meniani".
The seats rest directly on the sloping ground; The field for the games, the proper "arena", measured .
The field was separated from the public by iron gates.
The arena had a total of 15 gates.
A series of underground passageways were built underneath the arena along the main axis from which animals, ludi scenes and fighters could be released; stores and shops were located under the raked seating.
The amphitheatre was part of the circuit of the gladiators.
Each of the four towers had two cisterns filled with perfumed water that fed a fountain or could be sprinkled on the spectators.
The amphitheatre could be covered with "velaria" (large sails), protecting the spectators from sun or rain (as attested by rare construction elements).
This amphitheatre, through its remarkable conservation, has served as an excellent example for the study of ancient building techniques.
The Arena was built between 27 BC and 68 AD, as the city of Pula became a regional centre of Roman rule, called "Pietas Julia".
The name was derived from the sand that, since antiquity, covered the inner space.
It was built outside the town walls along the "Via Flavia", the road from Pula to Aquileia and Rome.
The amphitheatre was first built in timber during the reign of Augustus (2–14 AD).
It was replaced by a small stone amphitheatre during the reign of emperor Claudius.
In 79 AD it was enlarged to accommodate gladiator fights by Vespasian and to be completed in 81 AD under emperor Titus.
This was confirmed by the discovery of a Vespasian coin in the malting.
St. Germanus, of whom little is known, was allegedly tortured in the Amphitheatre in or around 290, and subsequently martyred outside the city, on the road to Nesactium.
The legend is apocryphal.
The amphitheatre remained in use until the 5th century, when emperor Honorius prohibited gladiatorial combats.
It was not until 681 that combat between convicts, particularly those sentenced to death, and wild animals was forbidden.
In the 5th century the amphitheatre began to see its stone plundered by the local populace.
By the 13th century, the patriarch of Aquileia forbade further removal from the Arena.
In the Middle Ages the interior of the Arena was used for grazing, occasional tournaments by the Knights of Malta and medieval fairs.