Nearshoring is the new trend that all companies are either shifting to or taking in serious consideration given the latest demand not just for manpower and skillset but also to new regulations and demand for quality and security. This article covers the perks of choosing nearshoring as a business strategy and why it is a win-win solution for all parties concerned.
Why nearshoring over offshoring?
Because it is still cheaper than at home but with higher quality and better security!
While costs may play a significant role in decision making when considering to outsource services or development, many chose quality and security over cost. Even traditional companies who have always done in-house development are pressed to stay competitive by providing fast, cheaper and more efficient solutions. Due to the lack of workforce and skill set, some of them are slowly opening up to the concept of nearshoring.
The fact that you can stay in control of the process of development, handpick the experts with the right skills, have them work hand in hand with your employees and have the needed face-to-face meetings with low cost and no hassle opens up a new chapter of possibilities.
Being able to maintain the efficiency, security and quality but with reduced costs and an ability to control the budget depending on your needs and demands – all of this allows companies to focus on their core business and dominate the market with all their domain experts needed located just a few hours away!
The perks of nearshoring?
Geographical proximity, cultural similarity and legislation, to name a few.
Geographical proximity, same time zone, cultural similarities and language are some of the key reasons to decide to outsource and shift to nearshoring.
Geographical proximity is a key factor which allows two critical factors to be successfully implemented - both efficiency and communication. It also enables companies to bring people onsite and visit them much more frequently for a fraction of the cost and without hassles for visa and other regulations. Cheaper business travels and an ability to bring or visit someone the very next day is crucial to the success of any cooperation. Outsourcing something near to you will increase the productivity of the collaboration as well.
When it comes to time zones and the ability to communicate in real-time and address something immediately, businesses become much faster at problem-solving and urgent problems could be solved in real time. Paying immediate attention to something will save you money and increase efficiency by better communication and fewer misunderstandings or having to wait till the next day to address a problem if your outsourcing company is in a different time zone.
Moreover, cultural similarities within the same continental region allow companies to achieve their goals with fewer problems. This is largely connected to work habits and cultural differences and expectations. Similar cultures make the whole process and transition smoother and better when it comes to understanding one another.
Last but not least, security, country regulations and potential loss of sensitive data have so far limited many companies and pushed them into outsourcing overseas at all costs. Choosing the right provider is a real challenge but it can be easily surpassed if choosing a company that works within the same (European) continental region. When it comes to data security and personal data protection, having a similar legislation along helps to operate with the needed assurance, trust and security.
The above-mentioned arguments point to the three main pillars of Nearshoring – Quality, Security and Communication!
Nearshoring would drastically increase trust-levels between companies. When both the client and the provider work closely to one another, they become much more efficient for they better understand the issues at hand.
Daily based interactions between employees lead to increased productivity and all of these factors result in effective cooperation - crucial to the success of each business and project. Know your outsourcing experts as if they are your own employees!
And remember: Nearshoring has become the new offshoring.
If interested in how you can benefit from nearshoring, join us for a seminar on how to maximize your teams' potential with nearshoring which will take place on November 22 in Stockholm.
Contact person: Jenny.Dock@seavus.com