Offshore and nearshore outsourcing

Outsourcing can also be defined by the distance between the ordering party and the outsourcing company.

If there is a large distance between client company and service provider, for example their locations are on different continents, the provided services will be referred to as offshore outsourcing; if the companies are located geographically close to each other, for instance, in the same country or in neighbouring countries, such services will be referred to as nearshore outsourcing.