Global, International and Cultural Issues in IS


This paper reviews and extends previous literature on information systems offshoring by providing a critical analysis of theadvantages of shorter client-supplier distance in nearshoring projects (as compared to farshoring ones). Prior researchindicated that nearshoring brings forth a number of critical distance advantages, e.g. real-time overlaps, cultural similarities,linguistic connections, as well as political/economical similarities, and that firms increasingly consider nearshoring as part oftheir sourcing strategies in order to benefit from the relative proximity of nearshore suppliers. The conceptual paper at handdevelops six propositions challenging this simplified perspective by presenting emerging arguments which downplayfrequently mentioned advantages resulting from proximity. Our results suggest that the advantages of nearshoring overfarshoring in practice may not be as significant as previously assumed due to a number of factors including small size andavailability of nearshore labor force, limited nearshore supplier experience, and increasing international awareness.