The three forms of outsourcing are onshore, nearshoring, and offshore outsourcing. When the vendor company is located in the client’s country, it is called onshore. Nearshore outsourcing is when an outsourced provider is “near” to the client’s location and can offer benefits such as the same time zone, language, and currency. And the offshore model is when an outsourcing company is far from the client. Offshore teams, on the other hand, are the most cost-effective.