Why contract nearshore services?

Nearshoring is the practice of outsourcing work or services to people in neighboring countries other than the country where the organization is located. The most common types of outsourced work are software development, technical support, and call center work; nearshore services are contrasted with offshore and onshore outsourcing. 

Nearshoring vs. onshore vs. offshore 

While nearshore services relocation involves outsourcing services to a nearby country, onshore/offshore relocation involves renting or contracting services in a distant country. These options contrast sharply with local outsourcing, simply hiring or contracting services from outside the organization but within the same country. For example, for U.S. companies, nearshoring can be performed in countries such as Canada and Mexico. 

However, large-scale offshoring is possible in Asian countries such as India or the Philippines, South American countries such as Argentina or Brazil, or European countries such as Ukraine. The choice of outsourcing destination depends mainly on the company’s requirements and the type of work.

Advantages and disadvantages of nearshore services

Advantage

Geographically closer

This means more accessible travel and communications, as subcontractors may be in similar time zones. For companies using offshore services, time zone differences can be challenging to manage when meetings or quick responses are required. 

Save costs

Depending on the location and type of work, offshore relocation may be more beneficial, although this is only sometimes the case. For example, offshore software development is a more specialized skill, so labor costs may be less expensive than call centers—the largest talent pool. In addition to talent and outsourcing, proximity to offshore operations can significantly expand access to many high-quality service providers and outsourcing partners.

Disadvantages

Language disability

Although only in some cases, language barriers and cultural differences can make it challenging to maintain a flexible working relationship in some cases. However, this is only sometimes the case, as many neighboring countries share cultural similarities.

There is no talent pool as large as offshore.

Although nearshore services provide a larger talent pool than domestic outsourcing, it is smaller than offshore outsourcing. 

Cumbersome 

In some cases, teams from different locations are less comfortable working together. For example, when outsourcing software development, an implementation process that requires rapid response and problem resolution, two people in different locations may need help to work together and deliver a high-quality software product. However, organizations can often solve these IT service issues with a predetermined rotating shift schedule.

For organizations interested in outsourcing, offshore companies can help deliver quality services at lower costs while helping internal teams facilitate the adoption of the organization’s business processes and protocols.

Talent and Skills

Finally, research the nearshoring software source countries. Check their reputation by doing quality research to ensure the country is known for its talented or skilled workers. This will help you decide which company is the best choice for your business. By looking at the level of education in each country, you will be able to understand better if the people are qualified enough to help your company achieve its goals. The question is not whether choosing nearshore services software is the right choice because it is. The real issue here is maintaining a certain standard level before making the final decision.

Why choose a nearshore services strategy?

The primary key to well-functioning nearshore services is communication. Communication between teams and managers is fundamental in any project. Consistent and transparent communication that provides visibility to all is the key to success. Offshore business practices must be compatible with the company’s business objectives. In this regard, cultural proximity, language proficiency, and a perfect market understanding are the basis. Companies should consider all these requirements when choosing an offshore partner. In addition to our technical skills, and agile and user-centric design practices, Heinsohn offers a variety of collaboration models, including quality, high-performance equipment at affordable costs.