What does offshoring refer to in a business context?

Offshoring in a business context specifically refers to the practice of employing people overseas for various tasks. This is often done to take advantage of lower labor costs, skilled workforce availability, or to benefit from favorable regulations in different countries. Companies may choose to move production, customer service, IT support, or other operations to locations where they can achieve these objectives.

The other options, while they may involve aspects of business operation, do not capture the full essence of offshoring. For instance, relocating data centers to another country focuses solely on the infrastructure aspect rather than the human resource element integral to offshoring. Outsourcing tasks to local companies pertains to delegating work to external local firms, which is different from employing individuals in other countries. Lastly, reducing overhead costs by eliminating staff points to cost-cutting strategies rather than the practice of offshoring, which actively involves hiring individuals in different geographical locations. Thus, option B correctly identifies the fundamental nature of offshoring.