It has already become already an observable trend over the past years for companies to continuously outsource work to foreign institutions in order to reduce production costs and significantly accelerate in-house work.
Why nearshoring seems to be more notable than popular offshoring?
Nearshoring simply means there is no perceptible distance between companies and as a result communication is way easier when compared to offshore processes. There are no time lags and sizable differences in regional employment practices.

Sharing a boundary with the aim country also means that both parties benefit not only from avoiding cultural and time gap but likewise similar political and law dimensions.
The major advantage of nearshoring is the small diversity in time zones. Also speech barriers may be a large barrier for both sides while outsourcing and nearshoring ensures approximately smaller cultural gap which means that outsourcing companies may be a better enterprise for your business.
It is the best choice for businesses looking to outsource through nearshore without the demand for purchasing work permits, sharing related intellectual property and copyright laws. It is also a rational choice for countries to choose neighboring state due to less risks involved.
Summary of nearshoring:
- same time zone,
- few cultural differences then outsourcing,
- cost-effective, but usually a higher than offshoring,
- no hassles with hiring in-house professionals,
- small distance (possible face-to-face meetings and quick communication),
- flexibility - you can try as many partners as you need before finding the right one.