What is Nearshore Outsourcing and what are its advantages?

Nearshore outsourcing or nearshoring is the practice applied to business outsourcing, services are performed by personnel in neighboring or nearby countries instead of in the country of origin. Currently, the countries that most use this method are US companies that subcontract services in Canada or Mexico and Latin America. While it is true that increasingly is being an extended practice at a European level.

What is Nearshore Outsourcing and what are its advantages?

If you are thinking of implementing a Nearshore service in your company, there are many questions that may arise. We propose 4 keys to analyze to make the decision in a thoughtful way:

  • Importance of the business that we are managing, related to the type and volumes. Generally, a Nearshore service reduces indirect costs, which is why it is very beneficial for large, medium and small companies thanks to this and the great diversification of the risk it provides.
  • Analysis of the objectives to be achieved, since one of the biggest obstacles to the successful deployment of an organization is the accumulation of functions unrelated to this true objective.
  • Geographic proximity and common time zone. This factor makes things much easier when managing a project. Work in the same time slot as your provider will allow you to contact him whenever you have a question or a new need.
  • Cultural compatibility. Despite its importance, perhaps this is one of the most forgotten factors. You must evaluate if you share the same work culture as your outsourcer. Only then will you get a satisfactory relationship.

Benefits of using the Nearshore Outsourcing model

  1. Cost savings: The first and most clear benefit is the savings in operating costs of the company due mainly to the reduction of employees, the reduction of fixed costs for salaries, social charges and decreases in time dedicated to people management.
  2. Reinvestment of the savings generated. The first of the factors allows to reinvest the savings generated in other key aspects of the company.
  3. Improvements in the service: Facility to implement a service model of 24 x 7 x 365 (24 hours a day, every day of the year).
  4. Scalability: The Nearshore model always contemplates the possibility of extending services. In this way the client achieves great flexibility in the face of growth.
  5. Security: One of the greatest benefits of outsourcing is that it is no longer necessary for the company to manage the problems arising from the service thanks to outsourcing. This provides a great operational tranquility to the company.

You already know the advantages of Nearshore for your company. Do you need more info? Take a look at our services.

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