Outsourcing (the American for offshoring) has become a frequent tool of attack in the recent US election debates. However, the debate does seem to have helped in clarifying the difference between the relocation of services (offshoring) and the more general contracting of services to an external company (outsourcing).

In recent debates Obama has criticised Romney’s record in offshoring services and jobs to China, including the offshoring of holdings and investments in companies involved in such practices. The Republican party have also been quick to point to Obama’s hand in transferring jobs and investment programs overseas.

In the October 16th debate at Hofstra University Romney rounded on Obama, saying: “You also have investments in Chinese companies … You also have investments through a Caymans trust”. Romney said that enterprises looked to China as an attractive offshoring destination compared to the US, and as such jobs will continue to be created in the more attractive location.

Both Obama and Romney have clarified on the differences of outsourcing and offshoring. Romney senior adviser Eric Fehrnstrom, said: “Outsourcing is what the Obama campaign does when they hire an outside telemarketing vendor to provide telemarketing services," adding, “Offshoring is the shipment of American jobs overseas”. Obama touched on the common misunderstanding in passing, saying: “If you're a worker whose job went overseas, you don't need somebody trying to explain to you the difference between outsourcing and offshoring".

Outsourcing has been used as a negative point in the US election campaign by both candidates. With jobs and the economy ranking as top election issues by voters, both candidates have focused negatively upon outsourcing as a practice. Both candidates focused upon China, with Romney labelling China as a tax manipulator while Obama spoke on closing tax advantages to offshoring destinations, mentioning China.

As mentioned the blanket use of terminology has been focused upon and the differences between offshoring and outsourcing have been touched upon within mainstream media, however these instances have been rare. Outsourcing is a word that is generally thought to hold negative connotations. The common business occurrence of offshore services, and the value investments that come to the shores of the US has been avoided, as has been the link between outsourcing and the billions of dollars of investment that it generates for the US economy.