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.