Nearshore outsourcing occurs when using organizations from developing countries to write code and develop systems. In offshore outsourcing the country is geographically far away.

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Nearshore outsourcing refers to outsourcing to companies in neighboring or nearby countries, often sharing a border or being in close geographical proximity, not specifically to developing countries. Offshore outsourcing involves partnering with companies in distant countries, regardless of their development status.

Nearshore Outsourcing Occurs When Using Organizations from Developing Countries to Write