Nearshore Outsourcing

niə ˈšɔhr ˌɑːwt.ˈsɔhrs.iŋ / Nearshore Outsourcing

Definition

Nearshore outsourcing is the practice of working with an external service provider located in a neighboring country of the hiring company. In this subset of offshoring, the client usually prefers to find an outsourcing partner in nearby countries with rich talent pools and lower salaries. Nearshore outsourcing allows the hiring company to delegate functions, such as back-office operations and software development, in a neighboring country or their region. Doing so gives more control over operating expenses while still finding the workforce for tasks it couldn't handle alone. A company that practices nearshore outsourcing can also see other benefits, such as fewer time zone differences, cultural and geographical proximity, language similarities, and cost-efficiency.

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