What are the disadvantages of offshoring?

The disadvantages of offshoring are: –

• Increase Unemployment
  The loudest criticism against companies offshoring is the possible rise in unemployment level for the local economy. Companies such as Nike and Caterpillar have been accused of taking away employment from Americans and replacing their existing workforce in favor of other nationalities. These organizations argue that by offshoring, they are capable of improving profitability by reducing costs and increasing revenue. Therefore, the increased profits can be used to enhance the facilities and programs of the principal organization.
• Cultural and Social Differences
  The client will be absorbed in the culture and social customs of the host nation. This might have an impact on productivity and communication.
  Unlike outsourcing, the time zone difference may work against the offshoring organization as the production could end up being delayed because of changes in workforce availability.
• Security Issues
  Whenever you share or transmit data to another party, you are always at risk of security breaches and compromised data integrity. Additionally, there will always be transfer issues when it comes to data, even when there is shared space collaboration.