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Onshore, offshore, bestshore, backsourcing… today about NEARSHORE!


In the past 3 years even inside our Romanian outsourcing meeting rooms you can hear more often –  as being part of our regular vocabulary – terms like: offshoring, onshoring, bestshoring and even more recently the new kid in town:”backsourcing”.

Recently IAOP – the international body for outsourcing professional became more specific regarding the term “Nearshoring”.

“Performing or sourcing any part of an organization’s activities at or from a location within 4 time zones of the company’s home country.”

Lately more and more companies HQ – US based decided to nearshore their operations – finding this outsourcing strategy more advantageous for the following reasons:

– being in the proximity of the customer is considered a strong advantage in terms of operational and travel expenses costs reduction;

– being in the same time zone there are more chances to have more similarities in terms of culture, legislation, business practices;

– similar work ethics or working principles;

– positive political relationship between countries located in the same geographical area (e.g EEOS – Europa, NAFTA – North America, AFTA – Asia.)

The economic crisis pushed the companies to find new ways to serve better their customer needs, to make their partnership with customers stronger and nearshoring seems to be a strategy who works for some US based companies who decided to near shore in Costa Rica for example or for UK based companies who nearshored to Ireland.

From this perspective Romania remains a strong nearshoring destination for any UE based company especially now that Egypt seems to not be a viable option anymore and Romania has definitely some language & technical skills advantages vs. Poland and Czech Republic.

Contributor: Amalia Sterescu

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