Onshore Outsourcing

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.

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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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Margaret Rouse

Margaret is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical business audience. Over the past twenty years, her IT definitions have been published by Que in an encyclopedia of technology terms and cited in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine, and Discovery Magazine. She joined Techopedia in 2011. Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages.