Nearshoring and offshoring are both strategies for outsourcing business activities or processes, but they differ in the geographical location of the service providers. Nearshoring refers to outsourcing services to a nearby country. This means that the country is often within the same region or an adjacent time zone. The advantage is that there is an overlap in working hours, and often similar cultural and business norms, which facilitates communication and collaboration.
In offshoring, you look to more distant countries, often on the other side of the world. Offshoring usually offers greater cost savings due to lower wages in distant countries. However, offshoring can be less flexible due to the physical and cultural distance and the time differences.