What term describes the outsourcing of production/services to locations near a firm's home base?

The term that describes the outsourcing of production or services to locations near a firm's home base is "nearshoring." This practice allows companies to take advantage of the cost benefits associated with outsourcing while minimizing some of the challenges related to distance, such as shipping costs and lead times. By situating operations in nearby countries, firms can maintain closer oversight, potentially respond faster to market changes, and foster cooperation across teams more easily, which is particularly advantageous in industries where flexibility and quick turnaround are crucial.

In contrast, offshoring refers to relocating operations to a distant country, typically to capitalize on lower labor costs or access to specific resources. Onshoring means bringing production and services back to the company's home country from overseas locations. Reshoring involves returning previously offshored operations back to the home country, aiming to regain control and improve quality or speed to market. Each of these terms defines different geographic aspects of operational strategy, but nearshoring specifically emphasizes proximity to the home base while still taking advantage of outsourcing benefits.