Offshore web hosting means the web hosting server is situated out side of United States. So Usually not bound by laws of USA. Netherlands, Germany, France, Malaysia, China are famous for Offshore web hosting. Canada, UK and Switzerland offer Offshore web hosting but pretty expensive.

Being offshore affords you enhanced data privacy and an international presence that your clients will appreciate. Also this might help you to provide better service for clients from each area. You may add offshore hosting accounts or servers if you wish to serve your site to a specific local audience such as China or Malaysia as a specific marketing effort to open up a sales channel in a particular region in the native language of the region. the closer your clients are to the server, the faster their connection times will be.