To help you determine which service is best for your company, we are going to explain in a simple way the key difference between outsourcing and nearshoring lies in the location of the external provider. 

Outsourcing involves delegating tasks or processes to an external company that can be located anywhere in the world, regardless of geographic proximity. This is done to reduce costs, improve efficiency or access specialized resources.

On the other hand, nearshoring is a specific form of outsourcing in which services or processes are outsourced to a nearby country, generally within the same geographic region, to take advantage of benefits such as cultural proximity, less time difference and relatively low costs.

An example of outsourcing is when a technology company in Spain hires a supplier in India for software development. On the other hand, an example of nearshoring would be if the same company hires a company in Portugal to do the same work.
In the case of nearshoring, geographical proximity facilitates collaboration and more fluid communication, although costs are not as low as in more distant countries.