Offshoring is relocating business activities to another, usually distant and lower-cost country, either to the firm's own centre (captive) or to a supplier. In EU finance, offshored critical functions face outsourcing and DORA rules on oversight, data and exit.
NearshoringNearshoring is moving work to a lower-cost location close to the home market, often in the same or a neighbouring time zone, such as from Western to Central and Eastern Europe or Portugal. Offshoring moves it to a distant country; onshoring keeps it at home.
Global capability centre (GCC)A global capability centre is a company-owned offshore or nearshore centre that delivers technology, analytics, operations and expert services to the wider group. It is the evolution of the captive centre, moving from transactional work to engineering and analytics.
Outsourcing (EBA Guidelines)Outsourcing is an arrangement in which a service provider performs a process, service or activity that the institution would otherwise perform itself. The EBA Guidelines on outsourcing arrangements (EBA/GL/2019/02) set governance, risk assessment, contract and register rules, with stricter terms for critical or important functions.
Outsourcing (EBA Guidelines)Outsourcing is an arrangement in which a service provider performs a process, service or activity that the institution would otherwise perform itself. The EBA Guidelines on outsourcing arrangements (EBA/GL/2019/02) set governance, risk assessment, contract and register rules, with stricter terms for critical or important functions.
DORA (Digital Operational Resilience Act)DORA, Regulation (EU) 2022/2554, sets uniform rules on ICT risk management, ICT incident reporting, digital resilience testing and ICT third-party risk for almost all EU financial entities. It has applied since 17 January 2025 and also creates EU oversight of critical ICT third-party providers.