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Nearshoring and Reshoring Keep Operations Closer to Home, Business and Industry Trends Analysis

Nearshoring is a variation on offshoring in which certain business operations, such as software development, or back-office support services, are outsourced to locations that are relatively close to the home country of the client company. Nearshoring aims to achieve results similar to those of offshoring in general (such as labor cost savings), while at the same time taking advantage of the relative proximity of the services provider to maintain outsourced operations in areas that share, for example, cultural heritage, common languages or a common time zone.

Nearshored operations can be easier to monitor, since the costs and time involved in travelling to such sites are kept at a minimum, and similar time zones make it easier to communicate. Examples include a firm in the U.K. outsourcing to Eastern Europe, or a U.S. or Canadian corporation outsourcing to Mexico or Latin America.

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