Outsourcing and offshoring are terms that are often confused with regards to meaning and usage. While closely linked, their meanings are not quite the same. Outsourcing is the delegation of tasks and/or processes to an external outfit, whether an individual or another company - not necessarily a foreign one. Offshoring is the shifting of tasks to a company in another country. In that sense, offshorers may also be outsourcers, but not all outsourcers offshore.
Reference to source