Nearshoring Law and Legal Definition
Nearshoring is a term used to refer the transfer of businesses or IT processes to a foreign, lower-wage country that is geographically close to the country that is transferring the services. Often the two countries share a border. Nearshoring is a derivative of the term offshoring. It means that a business has shifted work to a lower cost organization within its region. The person or company who conducts nearshoring expects to benefit from sourcing to a nearer location. Proximity in relation to geography, time zone, culture, linguistics, economy, political, or historical linkages are all considered in nearshoring. The service or work that is sourced may be a business process or software development. Nearshore outsourcing is not identical to nearshoring because many cases of nearshoring remain in the same organization and therefore are not outsourced.