Noshoring

Noshoring is a business practice combining elements of offshore and nearshore outsourcing solutions with local resources. It is primarily a response to recent mixed results many business have been experiencing using offshoring and nearshoring as cost-saving solutions to pressing business needs.

The complexities of offshoring—managing teams in different time zones, overcoming culture and linguistic hurdles, a lack of control over resources—are reduced, but not eliminated by nearshoring.

Noshoring, however, combines the comparative advantage of offshoring and nearshoring with the competitive advantage of using local resources as well. For example, software developers may be in Mexico, whereas project managers will be based in the United States in San Diego.

While the immediate cost-savings of noshoring may not be as dramatic as those derived from offshore and nearshore endeavors, the reduction in management complexities and increase in control over resources should reduce the overall costs of a noshore project.

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