Onshoring is the practice of outsourcing to another city within your country. Companies that take this approach avoid the risks associated with offshoring, such as cultural differences and foreign taxation policies, while also investing in their home country's economy.

Unlike offshoring, this type of outsourcing allows businesses to relocate operations within the country to a lower-cost location. A US tech company, for example, could "onshore" its customer support by closing a call center in India and opening one in Tennessee.