Why 'Nearshore' means that distance matters

The emergence of nearshoring in an industry that encourages virtual forms of working has proved that distance still matters in the information and communication industry. Distance is associated with difference that imposes difficulties in the smooth operation of the sourcing relationship. Nearshoring is sourcing service work to a foreign, lower-wage country that is relatively close in distance or time zone. The customer expects to benefit from proximity, geographic, temporal, cultural, linguistic, economic, political,and historical linkages. Nearshore dimensions can be used as multipliers of competitive advantage. Some top Indian firms have been expanding their global presence including into nearshore locations, offering a locational menu of choices to their clients. Indian companies such as Satyam Computers and Infosys have also refined their internal processes in mitigating time zone difficulties.