Management Information System (MIS) Practice Exam

Moving work from India back to a nearby country like Mexico is an example of...

1. In-sourcing.

2. Outsourcing.

3. In-forming.

4. Nearshoring.

The correct answer is: Nearshoring.

The situation described—moving work from India back to a nearby country like Mexico—fits the definition of nearshoring. Nearshoring refers to the practice of transferring a business operation to a location that is closer to the company's primary market, which typically involves relocating services to a neighboring country or one that is geographically closer, as in this case. This approach can offer various benefits, such as reduced transportation costs, better cultural alignment, time zone advantages, and improved communication compared to offshoring to distant countries. Companies often pursue nearshoring to enhance operational efficiency while still taking advantage of cost savings associated with outsourcing work. The other options, while related to business practices concerning labor and operational management, do not accurately describe this specific scenario. In-sourcing refers to the practice of producing products or services in-house rather than outsourcing them, which does not apply here. Outsourcing involves contracting out work to external organizations, typically in a far-off region, which is similar to offshoring but not contingent on the locale of the next destination. In-forming relates to the trend of information being readily available, often through technology, rather than the relocation of business operations.