Nearshoring
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Nearshoring or "nearshore outsourcing," is a concept for the form of outsourcing in which business processes are relocated to cheaper, yet locations which are geographically nearer.
Nearshoring can also be contrasted with offshoring or OffshoreOutsourcing, which implies relocation of business processes to cheaper locations, typically quite far from the parent location.
Major nearshoring destinations for US [[business]ess are Mexico and Canada, and in Western Europe, include Ireland, Eastern Europe and the Maghreb.
Companies that chose nearsourcing instead of offshore outsourcing do so for a variety of reasons. One is cultural differences. Since India is considered by many Western Europeans to have very reserved culture, there were cases where European companies were planning to do offshore outsourcing to India with a meeting, that promised further cooperation, but later dropped their intentions due to junior staff mentioning the flaws in the project. This sort of thing comes from a totally different culture and which was not acceptable by Germans, hence the project was stopped. The reason for nearsourcing is typically simple - same culture and same sort of mindset. For example, Germans would typically be more comfortable in working with a French person than would be with one from an Asian country, the reason being mainly cultural differences. Western Europeans are accustomed to a greater degree of joking and light humor at work, which has typically been unacceptable in Indian and Japanese culture.
So i would say it is a lot better for these companies to do nearby outsourcing where they can travel easily, in case if any major problem arises, setting up is more or less of the same scale.Template:Econ-stub