It is already a visable trend over the past years for companies to continuously outsource work to a foreign institutions in order to lessen production costs and to significantly speed up in-house work.
Why nearshoring seems to be a more notable than popular offshoring?
Nearshoring simply means there is no perceptible distance between companies, as a result communication is way much easier comparing to offshore processes. There is no time lags and sizable differences in regional employment practices.
Sharing a boundary with the aim country also means that both parties benefit not only from avoiding cultural and time gap but likewise similar political and law dimensions.
A primary perk of nearshoring is the small diversity in time zones. Also speech barriers may be a large hitch for both sides while outsourcing and nearshoring ensures approximately smaller cultural gap which means that outsource companies may be a better enterprise for your business.
It looks like it's a top finding for businesses looking to outsource through nearshore without the demand for purchasing work permits, sharing related intellectual property and copyright laws. It is also a rational choice for countries to choose neighboring state because due to less risks involved.
Summary of nearshoring:
- the same time zone
- few cultural differences then outsourcing
- cost-effective but usually a higher cost than offshoring
- no hassles with hiring in-house professionals
- small distance (possible face-to-face meetings and quick communication)
- flexibility - you can try as many partners as you need before you find the right one.
