Each outsourcing strategy—offshoring, nearshoring, and onshoring—brings something different to the table.
This article will walk you through outsourcing examples of each, helping you identify which one fits with your company’s culture best, meets your operational requirements, and keeps you agile in a competitive market.
Let’s begin.
Quick Comparison of Onshoring, Nearshoring, & Offshoring
Before we explore the details, here is an easy-to-follow overview to help you see what outsourcing type fits your needs best.
| Outsourcing Type | Best for Businesses That Value | Best Locations |
| Onshoring | – Quality control – Prioritize communication & oversight | – Midwest US states (Ohio, Iowa) – South US states (Texas, Florida) – Mountain US states (Utah, Colorado) |
| Nearshoring | – Balance cost savings with cultural compatibility & ease of management. | – Mexico – Canada – Costa Rica |
| Offshoring | – Cost efficient-Specialized global skills. | – Philippines – India – China |
5 Real-life Offshore Outsourcing Examples
If you are thinking of the most cost-efficient outsourcing strategy, this section will highlight how businesses use offshoring to make their business operations more efficient.
1. Wipro Technologies (IT Services)
Wipro Technologies is a global company offering IT and consulting services. They help businesses use artificial intelligence, cloud computing, and cybersecurity, to improve their operations.
Why They Offshored: Wipro offshored to cut costs, access a global talent pool, and offer 24/7 services to clients worldwide.
Where They Offshored: Based in India, Wipro offshored to the Philippines, China, and Eastern Europe.
What They Offshored: IT services, software development, customer support, and back-office operations.
How It Benefited Them: They cut operational costs by up to 30%, added blockchain and machine learning to their services, and grew their worldwide presence with locations in over 50 countries.
What You Can Learn: Start by identifying tasks that are costly but non-core to your business, in Wipro’s case, IT support. Then, research and choose a location that balances cost savings with access to skilled talent.
2. Zapier (Customer Service & Support)
Zapier is a web-based automation tool that connects Gmail, Slack, and Mailchimp. You can connect 2 or more apps to automate repetitive tasks without coding or relying on developers to build the integration.
Why They Offshored: Zapier offshored to access specialized talent, reduce operational costs, and provide round-the-clock customer support to their global user base.
Where They Offshored: India, Philippines, & Poland.
What They Offshored: Customer service and support functions to provide them 24/7.
How It Benefited Them: They minimized overhead costs on physical office spaces and improved their customer service by providing timely support across different time zones.
What You Can Learn: Offshoring offers a mix of reduced cost, access to a broader talent pool, and better customer satisfaction. Put the right systems and processes in place and working with an off-site team for customer support will go smoothly.
3. Buffer (Human Resource)
Buffer is an app that lets you schedule posts and manage your social media accounts on Twitter, Facebook, and Instagram. Buffer also comes with analytics and insights to help users track their posts’ performance.
Why They Offshored: Buffer offshored to access international HR expertise to manage its global team more effectively.
Where They Offshored: India, the Philippines, & Eastern European countries.
What They Offshored: Recruitment, payroll processing, employee onboarding, & development programs.
How It Benefited Them: They did not have to maintain full-time, in-house HR teams which reduced their overhead costs like salaries, benefits, and training expenses. Buffer’s leadership and core team can also focus more on the company’s primary goals–develop products and serve customers.
What You Can Learn: Assess which parts of your business could benefit from outsourcing. Then, analyze how cost-effective outsourcing will be for you. While there might be an upfront cost, the long-term savings from lesser overhead costs often make the investment worth it.
4. CleverTech (Accounting & Finance)
CleverTech is a technology consulting firm that specializes in custom software development, enterprise solutions, and startup innovations. They work with a range of clients to solve complex technological challenges using a team of skilled developers and consultants.
Why They Offshored: CleverTech offshored to access specialized expertise in financial management.
Where They Offshored: India, the Philippines, & Eastern European countries.
What They Offshored: Bookkeeping, financial reporting, tax preparation, compliance, & financial analysis.
How It Benefited Them: CleverTech accessed high-level financial expertise without the expense of hiring a full-time CFO or finance team. They reduced overhead costs and invested the savings for core business activities to grow and expand.
What You Can Learn: With non-core functions outsourced, redirect your internal resources to strategic business activities that drive growth. Expand your product line, improve customer service, or enter new markets.
5. Canva (Content Creation & Marketing)
Canva is a graphic design platform that simplifies the process of designing anything, from presentations and flyers to social media graphics and more. It has a simple drag-and-drop interface, making it easy for both professionals and non-designers to create designs.
Why They Offshored: Canva offshored to access specialized skills, cut operational costs, and provide round-the-clock service to their global user base.
Where They Offshored: India, the Philippines, & various Eastern European nations.
What They Offshored: Customer support, IT services, and aspects of software development & graphic design.
How It Benefited Them: Canva did not have to maintain full-time salaries, benefits, and other employee-related expenses for roles that are temporary or do not require full-time oversight. They also quickly developed and deployed new features for the platform as outsourced teams worked around the clock and were quickly mobilized to meet project deadlines.
What You Can Learn: Use the specialized skills and fresh perspectives that outsourced teams bring to drive innovation in your business. This could involve developing new products, improving existing services, or finding new ways to engage with customers.
5 Real-life Nearshore Outsourcing Examples
If you prioritize easy collaboration with teams in similar time zones, learn from these companies that excel in nearshoring.
6. Nearsoft [Now Part of Encora] (Software Development)
Nearsoft, now part of Encora, is a software development company that focuses on creating and supporting innovative software solutions. They specialize in product development, UX design, and software engineering, providing expertise to clients across various industries.
Why They Nearshored: Nearsoft chose to nearshore to take advantage of being close by, sharing a similar culture, and having the same business hours as their main markets, primarily in the US.
Where They Nearshored: Mexico & Latin America.
What They Nearshored: Software development, product design, & engineering.
How It Benefited Them: They easily collaborated with clients and quickly adapted to changing market demands. It helped them to be more cost-efficient and keep a high level of quality and innovation in their service offers.
What You Can Learn: When picking an outsourcing partner, make sure they fit well culturally and meet technical and professional requirements. This helps teams collaborate and communicate more effectively.
7. TTEC (Customer Service)
TTEC is a global company that specializes in customer experience technology and services. They focus on creating, setting up, and delivering transformative solutions for several of the world’s most well-known and innovative brands. The company offers an end-to-end platform that combines consulting, technology, care, and growth services to help businesses across different industries meet their customer experience goals.
Why They Nearshored: TTEC nearshored to leverage geographical proximity to its primary market, the United States, and enhance service delivery while being cost-efficient. They also chose this approach to match time zones and cultural similarities better for smooth communication and the overall quality of their service.
Where They Nearshored: Mexico, Canada, and several Caribbean locations.
What They Nearshored: Customer experience services, including customer support, technical support, and back-office processing
How It Benefited Them: They offered services in similar time zones to their primary market. This ensured that customer service was timely and more responsive, aligning with the customers’ schedules and expectations. Additionally, TTEC easily scaled its operations up or down based on the demand from the US market without significant logistical or financial strain.
What You Can Learn: When picking a place to outsource to, think about how well the culture and language match with your customers. This ensures better communication and improves customer satisfaction.
8. Gusto (Software Development)
Gusto provides cloud-based payroll, benefits, and human resource management solutions for businesses. The company simplifies complex HR tasks, offers compliance guidance, and automates processes like payroll, benefits administration, and onboarding.
Why They Nearshored: Gusto nearshored to access specialized talent in HR and tech, reduce cost while maintaining quality, and provide extended support hours to their clients across various time zones.
Where They Nearshored: Latin American countries and Canada.
What They Nearshored: Software development, customer support, and HR services.
How It Benefited Them: Gusto offered affordable prices and still made a profit by cutting down on overhead expenses through lower labor costs. Gusto focused more on core areas: product development, customer experience, and strategic growth initiatives.
What You Can Learn: Focus your resources and management efforts on the main business activities that help grow and make your business more profitable.
9. Auxis (IT Support)
Auxis is a consulting and outsourcing firm that helps companies save on costs and improve performance using nearshore outsourcing solutions. They offer a range of services, including IT outsourcing, finance and accounting outsourcing, and customer service solutions.
Why They Nearshored: Auxis chose to nearshore to benefit from being closer to, culturally aligned with, and in the same time zone as their main markets, mainly in the United States.
Where They Nearshored: Costa Rica and other Latin American countries.
What They Nearshored: IT support and development, finance and accounting operations, and customer service functions.
How It Benefited Them: They offered quick customer support during US business hours, quickly resolving issues and answering questions, which improved client satisfaction and loyalty.
What You Can Learn: Pick regions in the same time zones as your main markets if your priority is making real-time collaboration easier and improving customer service by having matching business hours.
10. Contentful (Software Development)
Contentful is a leading content management platform that helps both large companies and independent developers manage and deliver digital content to any type of device or service. It’s recognized for its API-first approach, which lets developers create and expand their digital projects more flexibly and efficiently.
Why They Nearshored: Contentful nearshored to tap into specific tech talent pools, be more cost-efficient, be more scalable, and make sure they can provide support and development across various time zones to serve global clients better.
Where They Nearshored: Eastern Europe and Latin America.
What They Nearshored: Software development, customer support, quality assurance, or technical writing.
How It Benefited Them: They managed to reduce operational and labor costs. These savings were redirected to other strategic areas such as R&D and marketing.
What You Can Learn: Conduct a cost analysis to understand the potential savings of nearshoring to specific regions. Then, choose regions that are in similar time zones to your primary markets.
5 Real-life Onshore Outsourcing Examples
If you’re considering expanding your team but are not ready to venture into international outsourcing, learn how these companies leverage onshoring to thrive in their markets.
11. Square (Product Development)
Square, Inc. offers financial services and mobile payment solutions. They provide a range of business tools, including point-of-sale systems, payment processing, and financial services.
Why They Onshored: Square chose onshoring to keep a high level of quality control, better integrate and coordinate their services, and innovate close to their main team.
Where They Onshored: United States.
What They Onshored: Product development, engineering, customer support, and financial services.
How It Benefited Them: They maintained a high standard of service quality. They oversaw processes directly and implemented quality standards effectively. This close oversight ensured that their offers stayed reliable and met high customer expectations.
What You Can Learn: Set up operations near your main team if you need to closely monitor quality and quickly tackle any issues that come up.
12. Zappos (Customer Service)
Zappos is an online retail company famous for its excellent customer service and a broad selection of shoes and clothing. The company has developed a strong brand that revolves around its culture and customer service approach–keep customers happy and employees content.
Why They Onshored: Zappos onshored to maintain and enhance their renowned customer service standards.
Where They Onshored: Las Vegas, Nevada, USA.
What They Onshored: Customer service, human resources, and various operational roles
How It Benefited Them: They kept strict control over training programs and service protocols to keep customer service quality consistent. They also cut down on delays in responding to and resolving customer issues, which improved customer satisfaction.
What You Can Learn: Invest in local talent who understand your market’s cultural nuances and communicate effectively with your customers. Regularly monitor customer service interactions and use feedback to make continuous improvements.
13. BambooHR (Customer Service)
BambooHR is a leading online human resources (HR) software service provider for small and medium-sized businesses. The company provides an easy-to-use and comprehensive platform that helps HR professionals handle different parts of employee data, including hiring, onboarding, pay, and workplace culture.
Why They Onshored: BambooHR onshored to maintain high-quality control over its product development and customer service.
Where They Onshored: Lindon, Utah, USA.
What They Onshored: Software development, customer support, and HR consulting services.
How It Benefited Them: They built a strong company culture and consistently delivered high-quality service to their clients. It also made their customer feedback response time faster and adapted their services to keep up with the changing needs of the HR industry.
What You Can Learn: Set up your customer service operations in the same time zones as your main customers to quickly respond to inquiries and improve overall service satisfaction.
14. Quicken (Software Development)
Quicken is a personal finance management tool that allows users to track and manage their financial activities. It has features for budgeting, tracking investments, monitoring bank accounts, and planning for future financial goals.
Why They Onshored: Quicken onshored to have high-quality control over its product development and customer service and maintain trust and reliability in the financial software industry.
Where They Onshored: United States.
What They Onshored: Software development, customer support, and financial advisory services.
How It Benefited Them: They maintained a strong reputation for quality and reliability. Their improved products, customer service, and user experience consistently met customer expectations, helping them build loyalty and trust with users.
What You Can Learn: Set up your customer service operations near your main customer base to offer quick and culturally relevant support, improving customer experience and loyalty.
15. HubSpot (Product Development)
HubSpot is a leading growth platform that provides software and support to help businesses improve. Their product suite includes tools for marketing, sales, content management, and customer service, all built into a single CRM (customer relationship management) platform.
Why They Onshored: HubSpot onshored to maintain a high level of control and integration across its product development, sales, and customer service teams.
Where They Onshored: Cambridge, Massachusetts, USA.
What They Onshored: Product development, marketing, sales, and customer support.
How It Benefited Them: They integrated customer feedback better into the product development process. They updated their software solutions promptly in response to user feedback or shifts in the digital marketing landscape.
What You Can Learn: Have agile teams that can adjust strategies quickly based on customer feedback or market trends. Make sure that your product development, sales, and customer service teams are well-coordinated for better communication and collaboration.
5 Factors to Consider When Outsourcing
Outsourcing is a big decision that involves company resources. While you’re thinking about your options, take note of these factors:
1. Communication Efficiency
If you prefer minimal language barriers so that communication is easier, onshoring or nearshoring is the best option. If you are willing to navigate potential language differences to access specialized skills at lower costs, go for offshoring.
2. Cost Implications
Offshoring offers the lowest labor rates in other countries. Nearshoring provides a balanced approach between cost savings and geographical proximity. Onshoring is preferable if keeping costs within the country for easier management and oversight is important.
3. Quality Control
For those concerned about maintaining high-quality standards through direct oversight, onshoring offers the closest control. If you can manage quality control remotely to access specific expertise, then nearshoring or offshoring can be effective options.
4. Cultural Compatibility
Onshoring aligns closely with your business’s cultural and operational practices. Nearshoring has slight cultural differences with the benefit of proximity and similar work hours that make it a suitable middle ground. If you are prepared to adapt to more cultural differences to reduce costs, then offshoring is advisable.
5. Speed to Market
If you have quick project turnaround times and market entry, onshoring has the shortest lead times. Nearshoring offers a compromise between speed and the benefits of lower costs and access to talent with potential delays. Offshoring can save on costs but might slow things down. It needs good management to handle the challenges of different time zones and communication.
| Factor | Onshoring | Nearshoring | Offshoring |
| Communication Efficiency | ✓ | ✓ | |
| Cost Implications | ✓ | ||
| Quality Control | ✓ | ✓ | |
| Cultural Compatibility | ✓ | ✓ | |
| Speed to Market | ✓ | ✓ |
Conclusion
Whether you’ve decided to outsource or are still deciding, check on your resources and team’s feedback on these major changes. Keep this question in mind: Which strategy offers the best balance between cost, quality, and efficiency for your unique circumstances?
Consider teaming up with Genius for your outsourcing needs. Our on-the-ground sourcing approach helps you access the top 1% of global tech talent. We only ask for a one-time fee, no hidden charges. Start your journey now!
FAQs
1. What are the usual rates for offshoring, nearshoring, and onshoring?
The rates for offshoring, nearshoring, and onshoring vary based on the country, industry, and type of service being outsourced. Generally, offshoring is the most cost-effective, nearshoring offers a moderate cost reduction, and onshoring provides savings while keeping jobs within the
country, though it’s typically the least cost-effective of the 3.
2. Why do people resist outsourcing?
People often resist outsourcing because they worry about losing control over their work and are concerned about communication issues with external teams. To ease these concerns, choose reliable outsourcing partners and establish clear communication channels.
3. Is my data protected when I outsource?
When you outsource, choose providers who follow the best security practices and make sure your outsourcing agreement includes strong data security measures. Check that the provider has solid security systems in place.
4. What are the tools I need when I outsource?
When outsourcing, you will need communication tools like email, chat (Slack), and video conferencing (Zoom) platforms to stay connected with your external team. Additionally, use project management software, shared cloud storage, and cybersecurity measures to ensure collaboration is smooth, secure, and efficient.
