What is the difference between nearshore, onshore, and offshore?
Nearshore, onshore, and offshore describe where your outsourced teams or talent are located:
Onshore:
You hire teams or partners in your own country.
Easiest for communication, culture, and legal compliance.
Most expensive option—US rates for US companies.
Nearshore:
You work with teams in nearby countries (for the US, that’s Latin America).
Shared or similar time zones, strong English skills, and cultural affinity.
Delivers 40–70% cost savings, but with real-time collaboration and faster response times than offshore.
Offshore:
Teams are based in far-away locations (India, the Philippines, Eastern Europe for US companies).
Largest potential savings, but major time zone differences, possible communication barriers, and more management overhead.
Best for well-defined, long-term projects where real-time communication is less critical.
Summary:
Onshore: Local, easiest but most expensive.
Nearshore: Nearby countries, big savings, and real-time teamwork.
Offshore: Far away, lowest cost, but more complexity and delays.
