Offshoring
Offshoring
With Offshoring, the operating activities are relocated to another country, and the geographical location is irrelevant. Offshoring can be divided into two subdivisions, namely Nearshoring (neighbouring countries with or without a shared border) and Farshoring (distant countries e.g. countries in East Asia).
Nearshoring
Nearshoring
Nearshoring is the outsourcing of business processes, especially information technology processes, to companies in a nearby country, often sharing a border with the target country. Therefore, it is the opposite of Farshoring and can be seen as a special form of Offshoring
Onshoring
Onshoring
Onshoring is the exact opposite of Offshoring, it refers to the relocation of business processes to a lower-cost location inside the national borders. Functions and processes are often located to a nearby location, this is often the case with big clients, as close proximity may be a condition of the working agreement. A typical example could be suppliers of the automotive industry
