What are right terms when refer nearshoring

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We at Ropardo SRL are providing software development services – that include full range of services.

When we are offering these services outside of our country we are calling this nearshore (near-shore) / offshore services. But not once we observe that these terms are not always similar for everybody. For that in this article I detail words that are usual used when we discuss about nearshore / offshore.

Individual Software IT Services Testing/Code Review/Quality

Here are the terms

  • Outsourcing: identifying, acquiring and managing the receipt of sourced services from an external service provider
  • In sourcing (insourcing): identifying, acquiring and managing the receipt of sourced services from an internal service provider

By operating structure

  • Outsourced: Services are delivered by an external service provider
  • Insourced: services are delivered by an internal service provider
  • Captive Centers: a service delivery entity that is wholly owned and operated by the organization or organizational group to which the sourced services are delivered, typically located at an offshore location and operated as a separate legal entity
  • Shared Services: one business unit delivers and/or manages the delivery of sourced services to multiple business units within the same enterprise
  • Joint Venture: a service delivery entity that is jointly owned by two or more parties, at least one of which is not the entity to which the sourced services are delivered
  • Build-Operate-Transfer: external service provider owned entity engaged with the expressed intent and/or option of transitioning the delivery mechanism (e.g., people, capital, processes, IP) of sourced services to an internal service provider (at some future time)

By location that service is delivered

  • Global Service Delivery / Global Sourcing: a service delivery strategy that uses multiple geographic locations for service delivery where such locations may be different from the location of the service buyer(s)
  • Onshore: a final delivery state where the service delivery location is within the same geographic jurisdiction as the service buyer
    • Onshoring: the process of transitioning service delivery to a location within the same geography as the service buyer
  • Nearshore: a final delivery state where the service delivery location is in a different geographic location (e.g., country) of close proximity to the Service Buyer
  • Offshore: a final delivery state where the service delivery location is in a different geographic location at a distance to the service buyer, most commonly a different continent
    • Offshoring: the process of transitioning service delivery from the location of the service buyer to a different geography
  • Onsite: the process of delivering services via co-resident resources relative to the service users

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