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The purpose of this paper is to unravel and assess current nearshoring practices and their outlook in the Baltic region.

The authors draw on the offshoring and outsourcing literature and use mixed methods of enquiry, including case studies, survey techniques and secondary statistical data. Part of the empirical base of the study is an examination of three Scandinavian firms that offshore their operations to vendors in the Baltics. To provide a more complete view of the practices and processes of offshoring in the region, the authors complement the case studies of Swedish and Danish manufacturers with a survey of 55 Lithuanian vendors and other statistical data.

The paper outlines the main drivers of nearshoring for Scandinavian manufacturing firms. Based on in‐depth insights into nearshoring initiatives, the authors elucidate how the initiatives evolved and what factors affected them. The survey results reveal the perspective of Lithuanian vendors regarding their relationships with Scandinavian partners. These findings are used in assessing the future prospects of nearshoring in the Baltic region.

The study relates the key attributes of Scandinavian companies' nearshoring practices to the perspectives of Lithuanian vendors. While the authors' discussion concentrates on how companies organise their operations in an increasingly global context, it also points to broader policymaking implications for the Baltic region.

The paper addresses the topic of nearshoring, which has thus far received limited attention in the management literature. By incorporating both the perspectives of offshoring and vendor companies, the paper provides a more complete view on the phenomenon and presents the main dilemmas underpinning it.