It means sourcing service activities to a foreign, lower-wage country that is relatively close in distance or time zone (or both).

The customer expects to benefit from one or more of the following constructs of proximity: geographic, temporal, cultural, linguistic, economic, political, or historical linkages.

Similar terms include nearsourcing and nearshore outsourcing.

The service work that is being sourced may be a business process or software development. As with offshore, the term "nearshore" was originally used in the context of fishing and other ocean-based activities and later adapted by the business world.

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