Near-Onshore as the New Standard

Near-onshore is rapidly emerging as a new standard in the global economic landscape, taking shape in a world where outsourcing spans multiple sectors and territories. Companies are rethinking their outsourcing strategies in light of recent disruptions to global supply chains.

This shift toward a hybrid delivery model combines the advantages of geographical proximity with cost optimization. Smart outsourcing strategies now integrate nearshoring as an essential component, enabling organizations to maintain tighter control over their operations while preserving key economic advantages. Moreover, the concept of hybrid-shore is gaining popularity, offering unprecedented flexibility to companies seeking to balance risk and performance.

This article explores why near-onshore is becoming the preferred solution, compares different outsourcing models, and highlights concrete examples of organizational transformation. Through this lens, we will see how this approach addresses the contemporary challenges of businesses striving for resilience and agility.

Drivers of Change Toward Near-Onshore

Recent global disruptions have catalyzed profound changes in corporate outsourcing strategies. Relocation, driven by the search for cost optimization and flexibility, is one of the main forces behind this evolution. The shift to near-onshore can be explained by several key factors that are redefining organizational priorities.

Geographical proximity and relocation make it easier to account for French culture and specificities, thus facilitating communication and project management. It is essential to understand the differences between the types of outsourcing: offshore, nearshore, and onshore—each suited to a specific project or activity depending on the company’s needs.

Within strategic relocation, the management of work and workers becomes a central issue to ensure quality and compliance of operations. Choosing the right provider(s) also depends on the site or territory of implementation, in order to optimize collaboration and performance.

It is crucial to clearly define the project, contract, and client relationship to ensure the success of near-onshore operations. In the face of growing complexity, seeking professional advice is becoming increasingly important, as more companies turn to near-onshore for their activities.

Finally, the Maghreb—particularly Morocco, Algeria, and Tunisia—stands out as a preferred nearshore destination for French companies, thanks to geographical, cultural, and linguistic proximity.

Logistic Crises and Supply Chain Disruptions

The COVID-19 pandemic brutally exposed the fragility of global supply chains. Factory closures, border restrictions, and transportation disruptions led to major delays and shortages [1]. The Suez Canal incident in March 2021 illustrates this vulnerability perfectly, temporarily blocking 369 ships and delaying around €9.16 billion in daily trade [1].

These disruptions triggered a fundamental reassessment of traditional supply chain models. Previously, these chains were designed to deliver quickly and cost-effectively to customers, relying on outsourcing and “just-in-time” inventory systems [1]. However, this complexity means that the cumulative effect of disruptions can take a long time to resolve.

Environmental and Regulatory Pressures

At the same time, new environmental requirements are pushing companies toward more sustainable models. The FuelEU Maritime regulation, which came into force on January 1, 2025, mandates a gradual reduction in greenhouse gas emission intensity, starting at -2% in 2025 and reaching -80% by 2050 compared to the 2020 average [2].

Additionally, the International Maritime Organization (IMO) imposes strict requirements on reducing harmful emissions, encouraging shipping companies to adopt alternative propulsion methods and cleaner fuels [3]. To comply, companies are implementing various technical and organizational means to adapt their operations and infrastructure to environmental standards. Naturally, this regulatory evolution favors geographically closer supply models.

Strategic Relocation Imperatives

National security concerns are another major driver of this trend. Governments seek to reduce dependence on foreign suppliers for essential goods such as medical supplies and semiconductors [4]. In this context, choosing a local or regional company for strategic relocation plays a central role in securing and effectively managing supply chains.

Furthermore, rising protectionism contributes to the growth of onshore outsourcing. Unlike offshore, onshore outsourcing allows for greater control and closer contact between suppliers and clients, enhances the economic efficiency of national resources, and extends local value chains [5].

Sustainability is also becoming a key factor in supply chain management. Onshoring and nearshoring can significantly reduce the carbon footprint associated with long-distance transport, while compliance with environmental standards is easier to achieve with local or regional production [4].

Comparing Models: Offshore vs. Near-Onshore

In outsourcing, the choice between offshore and near-onshore is a critical strategic decision. For example, a French company may choose to outsource its IT operations to India (offshore) or Tunisia (near-onshore), depending on cost, proximity, or cultural priorities. The decision often depends on the business domain and project location, as well as the provider’s role and the client relationship. A growing number of companies are opting for near-onshore, attracted by the wide range of possible destinations. Popular countries include the Maghreb (Morocco, Algeria, Tunisia), Bulgaria, Serbia, Czechia, Russia, Madagascar, and India. The terms onshore, offshore, and nearshore—borrowed from English—are widely used in the sector to describe these models.

However, companies should not underestimate challenges related to working with foreign providers, particularly intercultural communication and expectation management.

Direct and Indirect Costs

Economic efficiency is a key factor in any outsourcing decision. Offshore development generally ranges from €23.86 to €71.57 per hour depending on the region [6], while onshore solutions are significantly more expensive, between €95.42 and €190.84 per hour [6]. Annual salaries follow the same trend: €23,855.25 to €66,794.71 for offshore developers versus €76,336.81 to €143,131.52 for onshore counterparts [6].

However, beyond direct costs (salaries, infrastructure, software), indirect costs such as recruitment, cultural training, and communication must also be considered [7]. An increasing number of companies now factor these indirect costs into their outsourcing strategies to optimize planning and decision-making. Nearshore offers an interesting compromise, with rates approximately 46% lower than onshore providers [8].

Service Quality and Control

In terms of quality, the nearshore model offers an optimal balance. Geographic proximity facilitates in-person meetings and project supervision [9], while reducing cultural and linguistic barriers that can hinder offshore collaboration [10]. For clients, this proximity ensures smoother communication, tighter project control, and easier service quality management.

Additionally, working in similar time zones enables real-time communication and faster incident response [8]. By contrast, offshore requires more structured processes due to time zone differences and cultural gaps [11].

Flexibility and Scalability

The offshore model excels in flexibility, providing wide access to international talent and allowing companies to scale teams quickly depending on project needs [12]. It also gives access to a larger pool of skilled workers globally, optimizing HR management. However, this approach can be limited by communication issues and cultural barriers [13].

Nearshore, on the other hand, offers a middle ground with good scalability and better cultural alignment [11], making it a preferred option for companies seeking a balance between cost and operational efficiency [14].

Geopolitical and Legal Risks

Geopolitical risks are a critical factor when evaluating outsourcing options. By 2023, 65% of large enterprises adopted a multi-country outsourcing strategy [15].

Political instability, corruption, and terrorism can significantly impact service delivery [16]. Additionally, regulatory differences between countries affect data protection and intellectual property rights [10].

Nearshore companies generally benefit from stronger legal frameworks and better data protection than offshore, while still offering more regulatory flexibility than purely onshore solutions [14].

Near-Onshore in a Smart Outsourcing Strategy

To implement an effective outsourcing strategy, near-onshore is now a central element of modern corporate operations. This approach requires a structured methodology to maximize benefits, and it is essential to seek specialized consulting to tailor nearshore outsourcing strategies to your needs.

Defining an Adapted Outsourcing Strategy

Developing a relevant outsourcing strategy begins with identifying precise business objectives and the core competencies to retain in-house. Thorough research is needed to determine which functions can be outsourced and to identify potential providers suited to your requirements. Organizations must carefully evaluate which functions can be externalized without compromising their competitive advantage. A comprehensive risk analysis is also indispensable, including potential impacts on existing processes.

Choosing the Right Nearshore Partners

Selecting nearshore partners requires an in-depth evaluation of their technical expertise, financial stability, and cultural alignment. It is essential to choose providers with proven expertise and strong market knowledge.

Integrating Near-Onshore into a Global Model

Integrating nearshoring into a global strategy requires clear governance processes. This includes defining roles and responsibilities, communication protocols, and problem-resolution mechanisms. It is crucial to adapt nearshore integration to each project to ensure operational consistency. As a result, organizations can maintain coherence while benefiting from the flexibility offered by nearshore.

Toward Model Hybridization (Hybrid-Shore)

The hybrid-shore model represents the natural evolution of smart outsourcing strategies. This approach combines the strengths of onshore, nearshore, and offshore depending on specific needs. It enables companies to outsource each activity to the most suitable destination, considering management, communication, and efficiency requirements. In practice, companies can retain critical functions in-house while outsourcing others to the most appropriate locations, thus creating an optimal balance of control, cost, and quality.

Case Studies: How Near-Onshore Transforms Organizations

IT Sector: Relocation in Eastern Europe

Eastern Europe has become a top destination for nearshore IT development, with the market doubling over the past eight years to exceed €7 billion [17]. Poland stands out with more than 430,000 IT professionals [17], followed by Ukraine (346,000) and Romania (192,000) [18]. This region offers exceptional quality, with Poland ranked 3rd worldwide in programming skills [19] and 1st in Java [19]. Moreover, savings are significant—up to 70% compared to Western rates [19].

Industry: Production Relocated to the Eurozone

The automotive manufacturer BMW illustrates this trend by relocating part of its production to Hungary and Czechia, investing over €2 billion in its Debrecen plant [3]. Similarly, Bosch relocated certain operations to Hungary and Slovakia to benefit from lower costs while maintaining efficient logistics chains [3]. This strategy is accelerating, as evidenced by a 62% increase in nearshore investments in 2022–2023 compared to 2018–2019 [3].

Customer Service: Multilingual Centers in the Mediterranean

Nearshoring customer service enables access to qualified multilingual talent while maintaining cultural alignment [20]. This approach also ensures time zone compatibility, enabling real-time responses [21]. Moreover, geographical proximity facilitates collaboration and allows more effective supervision of operations [21].

Conclusion

The near-onshore model is now much more than a passing trend in the outsourcing world. This hybrid approach is emerging as a strategic response to today’s global supply chain challenges. Recent logistical disruptions have revealed the limits of traditional offshore models, pushing companies to favor resilience and flexibility.

Comparing outsourcing models shows that near-onshore offers the best balance between cost and control. While it may seem more expensive than pure offshore, it significantly reduces operational risks while ensuring superior service quality. Companies are thus adopting a more nuanced view of outsourcing, beyond cost alone.

Concrete examples from multiple sectors confirm this major shift. Eastern Europe is attracting IT projects, while Euro-Mediterranean regions are hosting production and customer service centers. These changes reflect a profound redefinition of organizational priorities.

Looking ahead, the hybrid-shore model will likely continue to gain traction, wisely combining the strengths of each approach depending on business needs. This flexibility will enable organizations to adapt quickly to geopolitical and economic uncertainties.

The geographical, cultural, and time-zone proximity offered by near-onshore thus constitutes a strategic advantage for companies seeking to build resilient operational ecosystems. Far from being a defensive reaction to recent crises, this approach represents a proactive vision of outsourcing, aligned with sustainability, agility, and control—the defining features of today’s global economy.

References

[1] - https://www.fticonsulting.com/insights/articles/supply-chain-disruption-risk-global-economic-recovery
[2] - https://transport.ec.europa.eu/news-events/news/new-eu-rules-aiming-decarbonise-maritime-sector-take-effect-2025-01-10_en
[3] - https://www.makerverse.com/resources/insights-and-trends/nearshoring-in-europe-advantages-and-challenges/
[4] - https://arc-group.com/strategy-onshoring-nearshoring/
[5] - https://www.sciencedirect.com/science/article/abs/pii/S0954349X21001077
[6] - https://www.linkedin.com/pulse/onshore-vs-offshore-development-pros-cons-cost-comparisons-twendee-kb4wc
[7] - https://roicallcentersolutions.com/blog/onshore-offshore-business-outsourcing-guide/
[8] - https://www.maximaconsulting.com/newsroom/offshore-vs-nearshore-vs-onshore-it-outsourcing
[9] - https://nearshore.keyrus.com/en/en/insights/differences-between-nearshore-offshore-onshore-and-other-service-outsourcing/
[10] - https://necodex.com/resources/onshore-nearshore-and-offshore-in-tech-taxes-benefits
[11] - https://www.aezion.com/blogs/onshore-vs-nearshore-vs-offshore/
[12] - https://dirox.com/post/nearshore-vs-offshore-vs-onshore-decoding-tech-talent-costs
[13] - https://jumpgrowth.com/nearshore-vs-offshore-vs-onshore/
[14] - https://ponticasolutions.com/what-is-onshore-nearshore-and-offshore-outsourcing-and-how-to-choose-the-best-option-for-your-business/
[15] - https://www.gartner.com/en/newsroom/press-releases/2019-11-19-gartner-says-organizations-must-review-outsourcing-ar
[16] - https://info.siteselectiongroup.com/blog/geo-political-risks-and-business-climate-of-nearshore-and-offshore-call-center-locations
[17] - https://neontri.com/blog/outsourcing-eastern-europe/
[18] - https://alcor-bpo.com/tech-hubs-in-eastern-europe-now-vs-future-landscape/
[19] - https://brainhub.eu/library/nearshoring-eastern-europe-top-locations
[20] - https://www.conectys.com/nearshoring-customer-support-outsourcing/
[21] - https://www.infosysbpm.com/blogs/customer-service/nearshore-customer-support-advantage.html

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