Onshore vs Offshore vs Nearshore: IT Outsourcing for US Companies

Finding the Right Talent, Wherever It Is

US companies looking to outsource IT services have a world of options. The three main models – Onshore, Offshore, and Nearshore – offer different cost/benefit trade-offs.

Onshore

What: Outsourcing to a company within the US.

Pros: No time zone issues, shared language and culture, easier legal recourse.

Cons: Highest cost.

Offshore

What: Outsourcing to distant countries like India, the Philippines, or Eastern Europe.

Pros: Lowest cost, access to a vast talent pool.

Cons: Significant time zone differences (10-12 hours), potential cultural/language barriers.

Nearshore

What: Outsourcing to countries geographically close to the US, like Canada, Mexico, or Latin America.

Pros: Minimal time zone differences (0-3 hours), often lower cost than onshore, growing talent pool with good English proficiency.

Cons: Costs are higher than offshore.

The Blended Model

Many US firms use a mix: Nearshore for daily collaboration, Offshore for cost-sensitive, less time-critical tasks, and Onshore for project management and client-facing roles.

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