Nearshoring is when an organization decides to transfer work to companies that are less expensive and geographically closer.
Using this model allows businesses to move their operations to a closer, more cost-effective location.
This close proximity allows for fewer time zone differences, cultural discrepancies, and a greater level of control in decision-making processes.
Offshoring refers to partnering with a company that is located in a country far enough away that they operate in a completely different economic environment and time zone.
The offshoring company will likely have many cultural and language differences as well.