Offshoring is the practice of locating some of a company’s manufacturing, services, or other processes in a country other than the country where the company is based. Offshoring is typically done to access lower-cost labor resources, labor resources with specific skills, and infrastructure, such as manufacturing plants.
In Texas, offshoring is not directly regulated by specific state statutes, as it is primarily a business strategy that companies use to reduce costs and access specific labor markets. However, businesses in Texas must still comply with federal laws and international trade agreements when engaging in offshoring. This includes adhering to tax regulations, reporting requirements, and labor standards set by the United States government. Additionally, companies may be subject to the Foreign Corrupt Practices Act (FCPA), which prohibits bribery of foreign officials, and they must ensure compliance with import-export regulations. While Texas encourages business growth and development within the state, companies choosing to offshore may not be eligible for certain state incentives that are designed to promote local job creation and economic development.
