Nearshoring is a form of Outsourcing in which business processes are relocated to cheaper, still, geographically closer locations.

Nearshoring can also be contrasted with Offshoring or OffshoreOutsourcing, which implies relocation of business processes to cheaper, typically foreign locations.

Major nearshoring destinations are Mexico and Canada for US businesses, Ireland and Eastern Europe for European companies.

There are lot of factors, why these companies do near sourcing instead of offshore outsourcing. To give an example i would say, in europe because of a different culture, people are more often and express themselves in a very open way.

India for example is a very reserved culture
who have their own limits(By the way,
i am an indian as well living in london). 

I was reading an example which said german companies who were planning to do

offshore outsourcing to india stopped their 

work because after the meeting with the bosses in india which was really positive,

they later  got few e mails from the  people who 

were also present in the meeting(Junior staff)

saying about the  flaws in the project.This sort of thing comes  from  a totally  different culture and which was not acceptable by germans, hence the project was stopped.

Germans have a different way(European way),

say everything openly and which
i personally feel in really good. 

Neverthe less india is going really

well  as far as this topic is concerned.

The reason for nearsourcing is really simple ... same culture and same sort of mindset.

I  would say a german will be more comfortable
in working with a french then an asian,,
reason being cultural differences.Western people
laugh and joke at work, which is unacceptable 

in Indian and Japanese culture.

So i would say it is a lot better for these companies to do nearby outsourcing where they can travel easily (In case if any major problem arises), set up

is more or less the same,,
but after the  change of currency to euro,
it's the same everywhere, so i would say
it won't be very feasible for a  company 

to move its base anywhere in europe.. yeahh oh by the way north block can be a choice ( if language is not a barrier) feel free to write back to me on my comment dattaravi@hotmail.com