Business Process Outsourcing | Nearshoring UK

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Difference between Nearshoring and Co-Sourcing

Nearshoring and co-sourcing are common terms in UK’s business world. Although both of the above mentioned terms are closely related yet they have a few basic differences between them. People in the UK usually misunderstand these terms and this confusion causes ambiguity. In this article, we will take a look at the primary difference between nearshoring and co-sourcing in general.


Nearshoring is a service that requires the outsourced company to be in the same geographical zone, time zone or both. Nearshoring involves coordination between the parent company and the outsourced company on a physical level. Nearshoring is sometimes referred to as nearsourcing as well. As with outsourcing, nearshoring or nearsourcing can include a multitude of business processes like human resources, payroll, logistics, bookkeeping, collections and deliveries etc.

As compared to offshoring, nearshoring is less risky. When we talk about offshoring, the risk of working with foreign and distant companies hinders many UK based companies from outsourcing their activities. Nearshoring eliminates this risk factor considerably by reducing the complexity of offshore outsourcing.


Co-sourcing is a form of outsourcing that involves a combination of internal and external resources working together to execute a business process. The most common example can be of internal auditing where some of the functions of this process are outsourced to specialised external staff and the rest are performed by internal staff. Co-sourcing is utilised in many business processes in the UK. Common examples of these processes include mortgage, logistics, courier, recoveries and sales etc.

Although nearshoring and co-sourcing are both types of outsourcing at a broader scale yet they are distinguishable easily due to their inherent characteristics. If you are in the UK and want to nearsource or co-source your business processes and functions then ShortCut can provide you with assistance. We offer free BPO quotes to UK based companies. You can receive up to 5 free BPO quotes from us by filling in a simple form.

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