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Onshore Outsourcing

Definition - What does Onshore Outsourcing mean?

Onshore outsourcing is a business model that uses an external but local company for one or more internal business processes and services. Onshore outsourcing enables an organization to use a local company for IT and IT enabled products, services, operations and support. This helps companies to reduce internal IT infrastructure and support staff while meeting any legal or operational requirements that may apply.

Onshore outsourcing is also known as domestic outsourcing or near-shore outsourcing.

Techopedia explains Onshore Outsourcing

Onshore outsourcing is designed to eliminate or reduce the amount of internal IT infrastructure and support staff and their associated costs. It works much like offshore outsourcing but selects a provider that's physically and officially present within the same country. Typically, onshore outsourcing is preferred by organizations with strict legal and operational requirements. For example, financial and medical institutions are generally bound to keep customer data and records within the geographical territory of the native or originating country, essentially barring them from offshoring IT job roles.

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