Nearshoring

Nearshoring is a business practice in which a company outsources its business processes or services to a third-party provider located in a nearby or neighboring country, typically within the same region or geographical area. Unlike offshoring, which involves outsourcing to a distant or offshore location, nearshoring offers advantages such as geographical proximity, cultural similarity, timezone alignment, and lower travel costs. Nearshoring is commonly used by companies to access specialized skills and expertise, reduce operational costs, improve collaboration and communication, and mitigate risks associated with offshoring, such as language barriers, cultural differences, and time zone differences.