This chapter deals with the conceptual issues of territorial embeddedness of offshoring and outsourcing firms. The starting point is a literature review on the concept of embeddedness, with particular reference to the domain of economics and sociology. Next, the authors elaborate on the basic ways of defining these concepts. The main subject of interest concerns the economic aspects of the discussed issues, in which references are made to the abundant literature on embeddedness in such fields as regional studies, international business, and networks. In particular, the authors focus on the embeddedness of economic entities and the impact of their socio-economic development on the places in which they are located. The concept of embeddedness takes into consideration the aspects of business, strategic management, and economic geography.