iTech Data Services

Nearshore vs Offshore vs Onshore: What’s The Difference?

Read Time: 3 minutes

You have probably come across the terms offshore, nearshore, and onshore outsourcing.

The main reason to outsource the work is to get the job done at low costs, quality and accuracy of work, on-time delivery, etc.

This article will briefly discuss offshore, nearshore, and onshore outsourcing and the differences between offshore, nearshore, and onshore in brief.

Lets dive right in..


Nearshore vs Offshore vs Onshore – What’s the Difference?

  • Nearshore is outsourcing to third parties in nearby countries with similar time zones. For instance, a nearshore outsourcing country for the United States would be Canada and Mexico.
  • Offshore is outsourcing to third parties to countries with considerable time zone differences. For instance, offshore outsourcing countries for the United States would be India and the Philippines.
  • Onshore is outsourcing to third parties within the country.

Let see about 3 outsourcing models in brief

1. Onshore Data Capture

Essentially, Onshore Data Capture involves outsourcing a data capture project to a data capture service provider within the borders of the company’s country. Onshore Data Capture outsourcing happens when a client’s specific needs necessitate so. Typically, Onshore Data Capture gets used for government requirements, regulations or to satisfy the need to keep sensitive data more secured.

The primary advantage of Onshore Data Capture is the ease of communication between the company and the contracted data capture service provider. As companies within the same border, a contractor’s employees across departments, such as sales, marketing, or customer service, are fluent in the native language.

Moreover, companies enjoy the perks of working with a service provider within the same time zone as them, eliminating a crucial factor such as time zone differences. Thus, onshore outsourcing streamlines communication regarding quality control issues. If the company needs its service provider to do work in a certain way, they can easily set appointments for training and reach a compromise.

Although the quality of work still depends on the company, Onshore Data Capture are generally very good. While the costs are high, companies usually get their money’s worth, maybe even more.

2. Nearshore Data Capture

On the other hand, Nearshore Data Capture involves outsourcing a data capture project to a data capture service provider along the borders of the company’s country. Companies contract a managed service provider to complete a specific task instead of finishing it in-house.

Nearshore Data Capture takes advantage of outsourcing to save costs while ensuring a clear line of communication as the involved parties are still within a similar time zone and bound by similar cultural practices.

As resources grow scarce, companies constantly try to find alternative ways to ensure expenses in operations, thereby driving up good talent. With that, Nearshore Data Capture, or outsourcing in general, helps companies, especially in developing countries, lower their wages without compromising the services they offer. Nearshore data capture outsourcing providers provide companies the equipment, facilities, and technical personnel they need at significantly lower costs.

Moreover, Nearshore Data Capture can be extremely helpful when companies deal with highly variable documents or when the results of automated methods still need to be handled manually.

3. Offshore Data Capture

Finally, Offshore Data Capture outsourcing is a great way for companies to optimize their costs. In essence, Offshore Data Capture involves outsourcing a data capture project to a data capture service provider outside a company’s borders and virtually from anywhere in the world.

Offshore Data Capture takes advantage of the lower costs of living in countries overseas. Although an issue for some, time zone differences may be beneficial as companies can have their businesses managed for 16, or even up to 24 hours.

Furthermore, companies can minimize, if not eliminate, hiring costs or other related expenses as they outsource data capture tasks, facilitating or expediting organizational growth and expansion. Like any other data capture methods, the quality is largely dependent on the contracted service provider, but they are generally good. Also, Offshore Data Capture costs are significantly lower than onshoring and nearshoring.


As established, data is at the core of any strong, resilient organization. A correct, accurate, and organized information is crucial for organizational growth and development, especially for growing companies. But, growing companies do not always have the resources to keep track and manage data daily.

Data Capture is a laborious, time-consuming, repetitive task that can often go neglected. Although essential for growth and development, these tasks may also incur added costs and take the time for higher-value, core business activities. Then enters Data Capture Outsourcing.

With data capture outsourcing, companies can delegate mundane tasks to service providers. This option frees more time to devote to core tasks instrumental for growth and development while ensuring that the data they outsource gets handled by a team of trained and experienced experts.

In summation, data capture outsourcing, whether onshore, nearshore, or offshore, work to free companies of overhead costs. Companies can delegate their data capture tasks to service providers who have the right equipment, facilities, and technical experts and make a living in doing just that. Data Capture Outsourcing might just be the answer to every company’s growing needs.

Subscribe to our blog for the latest industry trends

    Reach out to our team today!

    IDS Commander iTech2021