Nearshore Outsourcing: A Unique Solution for Business Organization
What is nearshore outsourcing?
When any business organization hires a third party organization from its neighboring countries with close geographical proximity to perform the contracted work, it is called nearshore outsourcing. It has its own benefits which include similar time zones, cultural proximity, similar language or dialects, and more. But most importantly, it is a cost-effective solution for any business organization which is planning to extend its services or presence.
Benefits of nearshore outsourcing
Time zone — The major reason why a business organization these days, prefers hiring a nearshore company is because it is easy to interact with the outsource team at any given time. “Different time zones” is the biggest drawback of offshore outsourcing. Business houses hence want to scale up their business through nearshore outsourcing rather than offshore outsourcing, because of similar time zones. Communicating with the nearshore company during working hours is very easy as it will be geographically closer to the client company. For example, a US company will prefer a Mexican organization for outsourcing, rather than an Indian one, because of proximity and more similar time zones.
Ease of communication during business hours can help with effective decision making, mitigating risks and reducing costs which are caused by changes in the project. Time is the key factor that can improve or destroy your project’s viability. Right decision is worthless unless implemented on time.
Expertise — A business organization needs people with expertise who can help with better understanding of goals and objectives. Hiring individual experts and professionals is expensive while outsourcing ensures that outsourced project is accomplished by professionals within your budget. Business organizations have several concerns to deal with, which often eat into their time and efforts, and shift focus from core areas. Hiring outsourcing firm is like leveraging the expertise on their account.
Cultural affinity — This is another reason why business organizations are choosing nearshore outsourcing these days. It promotes better understanding with effective communication without any disruptions. Also, it creates the sense of shared goals and ethics.
Affordability — Outsourcing to a nearshore company is a cost-effective solution for scaling the business by hiring third party expertise at affordable rates. On the other hand, if a company wants to go through the process of hiring expert professionals, it can be way more expensive. Hiring individual experts and managers for a particular project requires additional time and financial resources. Moreover, terminating them after the project accomplishment is not an effective solution. But outsourcing for a particular project or program is not only an adroit solution but is cost efficient too. The organization which is hiring, can seek assistance as and when needed.
Some important elements to consider
Though nearshore outsourcing involves a third party for a contracted work, you both share the same objective, i.e. the success of the project, and hence the third party’s ideas should be respected during the entire association period. Effective and regular communication along with in-depth understanding of project objectives can make a project a big success through nearshore outsourcing.