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Outsourcing · Jan 27, 2024
A guide to onshore, offshore and nearshore IT models
The three primary outsourcing models, their characteristics, advantages and trade-offs.
What is IT outsourcing?
Delegating specific tasks or processes to external providers so you can focus on core strengths while tapping global talent and cost advantages.
Offshore
Distant, lower-cost markets: broad talent pools, big savings and round-the-clock progress, with communication and data-security considerations to manage.
Onshore
Domestic providers: real-time communication and cultural alignment, at a substantially higher cost and with a narrower specialised supply.
Nearshore
Neighbouring countries: closeness, cultural affinity and similar time zones, a balance between offshore savings and onshore proximity.