The primary motivation for offshoring, which is the relocation of a business process to another country, is overwhelmingly driven by the strategic goal of cost reduction. Companies seek to leverage economic advantages in other locations, most notably lower labor costs. This financial incentive allows organizations to reduce their operational expenses, improve profit margins, and gain a competitive advantage in the market. While other factors like accessing new markets or skilled talent pools can play a role, the potential for significant cost savings remains the principal catalyst for most offshoring decisions.

A. Cheaper holidays: This is a personal travel consideration and is entirely unrelated to the corporate strategic decision of offshoring business operations.

B. Exploit other countries’ resources: This phrasing is pejorative and overly narrow. While accessing resources can be a factor, cost reduction is the broader and more fundamental driver.

D. Improve cultural competence: This is a potential secondary benefit or a soft skill that may develop from managing international teams, not the primary strategic reason for offshoring.

1. Christopher, M. (2016). Logistics & Supply Chain Management (5th ed.). Pearson. In Chapter 8, "Global Sourcing and Logistics," the text identifies the "search for lower costs" as a major driver of the trend towards global sourcing and offshoring, particularly citing lower labor and manufacturing costs (pp. 215-217).

2. Aron, R., & Singh, J. V. (2005). Getting Offshoring Right. Harvard Business Review, 83(12), 135–143. The article explicitly states, "The 'why' of offshoring is usually simple: to lower costs or tap a pool of skilled labor unavailable at home." It emphasizes that cost reduction is the most common and initial driver for companies considering offshoring.

3. Farrell, D. (2005). Offshoring: Value Creation Through Economic Change. Journal of Management Studies, 42(3), 675-683. This article discusses the economic rationale behind offshoring, highlighting that companies are motivated by the potential to capture value through wage differentials and other cost-related efficiencies between countries. (DOI: https://doi.org/10.1111/j.1467-6486.2005.00513.x)