What is the difference between outsourcing and nearshoring?

Companies form several key points while making their development team. At that time, there is only one thing in the mind of the management, and that is to keep the clearest solution at work locally. Advertisements are given for jobs. So that candidates can be easily found for recruitment, and they can be interviewed. But it is easy to just say. With the continued increase in salary expectations, the acute shortage of developers has prompted more and more companies to assess their options. Interesting things are also searched in Google regarding outsourcing and nearshoring. Through such words, employees are searched on Google. In Google searching, some words are also like this, such as offshoring, nearshoring and outsourcing. The problem with these results is that many of this information is unclear and limited. Actually, the information that is required is often not found through Google. That’s why we have tried to fulfil your curiosity in this article. We will tell you some important things about outsourcing, nearshoring, onshoring and offshoring.


Outsourcing directly means third parties. When companies get a third party to work on a contract basis, it is called outsourcing. This means either working with freelancers or vendors who work with freelancers. It is generally considered the cheapest way to get work. However, with no control over development, results can be very hit or miss, so it is not considered a permanent or very long-lasting strategy.


Nearshoring means close to home, but it is not enough. For example, developers in Los Angeles are very expensive. And neither option is easy. Nearshoring is useful for companies that seek continuous, real-time collaboration with their in-house staff. For a company based in Paris, proximate Ukraine can be done with Ukraine, which is only a few hours ahead.


When the transfer of development takes place in non-metropolitan areas within our country, it is called Onshoring. Fares, bills and wages in a city like London are very high compared to the rest of the country. Instead, if a development team or company is built in a nearby city, they can reduce the expenses slightly.

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Offshoring is near without proximity restrictions. You build an independently working development team, anywhere in the world. Everyone is a full-time employee of your company. This adds an awkward difference but eliminates the risks of confusing short-term contractors. It also allows companies to hand-select their developers with geographic range. They collaborate with your work on projects, in-house team and build software. Time zone sharing is a good benefit. This means that logistic challenges are, for the most part, average. You are less likely to experience a significant cultural difference between employees.

This is the main difference between outsourcing and nearshoring. The only small difference between in-house hiring and offshoring is that the office space is far enough away. For more information keep reading other articles on our website.

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