What is the process of transferring business or information technology processes to suppliers in a nearby country called?

The process of transferring business or information technology processes to suppliers in a nearby country is called nearshoring. This concept involves relocating certain business operations to a neighboring country, typically to benefit from geographical proximity, reduced shipping costs, or time zone advantages, while still taking advantage of lower labor costs compared to the home country. Nearshoring can facilitate quicker communication and collaboration between the company and the outsourced services compared to more distant options. The close geographical location often allows for easier travel and oversight, enhancing the efficiency of operations.

In contrast, outsourcing generally refers to delegating tasks to external organizations regardless of their location, without the specific emphasis on nearby countries. Offshoring is similar but usually denotes transferring processes to a far-off country, which can result in greater logistical challenges and communication barriers. Insourcing means bringing operations in-house instead of using external suppliers, contrasting the very idea of transferring processes out to others.