What are the components of off-shoring?

From what I can tell, a company will offshore for the
following reasons: 

1)  Reduced labor costs. 
Many companies will move their factories overseas where labor is
plentiful and labor costs are cheaper.

2) 
Strategics.   Many companies desire to tap into new markets and talents
not available domestically, and to avoid domestic regulations, taxes, and
tariffs. 

3)  Emerging IT Superiority of
Third World Countries.  China, especially, has made a push in recent
years to become a provider of technological services, particularly in the area of
software engineering. 

4)  Call Center and
Customer Support.  Due to its highly educated population and honed people
skills, the Phillipines is often looked to for outsourcing in these
areas.

Even though there are risks with data security and
privacy issues associated with off-shoring, some international companies feel it is
worth engaging in.  They take a look at where costs can be cut and where best to cut
them.  As with any domestic expansion project, these companies do their homework.  Plans
are drawn up, land is acquired, construction bids are taken, workers are hired,
and finally production facilities are built.  They take great care to insure everything
is done to the satisfaction and requirements of the country they are locating
in. 

Enough success is achieved by off-sourcing that
companies today continue to use it as a lucrative business
tool.