Nearshoring - Real-time Project Management. How does nearshoring affect the effectiveness of delivering results?
Why nearshoring can be more effective than traditional outsourcing
Nearshoring is one of the most popular outsourcing strategies, which is becoming more and more popular among companies from various industries. It consists in delegating work to other neighboring or geographically close countries, which allows for maintaining a similar culture, time zone, and easier communication between business partners. Thanks to this, companies can save on labor costs and at the same time maintain high-quality of services.
Nearshoring as an alternative to outsourcing: what is worth knowing?
The difference between nearshoring and other popular solutions, such as onshoring and offshoring, is that onshoring means moving business activities to local entities in the country while offshoring means moving business activities to countries located outside the country.
How does nearshoring increase the efficiency of your business?
Nearshoring is a form of outsourcing that can bring many benefits to your company. Firstly, it allows for savings related to labor costs and running a business thanks to lower costs of employees’ salaries.
In addition, nearshoring employees are often qualified and gain experience in international companies, which translates into high-quality of their work. Cooperation with a team from abroad allows us to introduce new solutions and ideas that are not available in the local market.
Nearshoring also provides easy scalability and flexibility, which allows you to quickly adapt to changing market needs. In this way, your company can develop at a fast pace and compete effectively in the market.
It is also worth emphasizing that working with a nearshoring team can be more effective than working with a local team, due to access to specialists with a high level of knowledge and skills. However, this requires proper organization and coordination, and the use of appropriate tools and processes to avoid communication and oversight issues
A key factor to consider when choosing a nearshoring partner
The choice of location for the nearshoring team is critical to the success of the project. Many companies choose to work with teams from Eastern Europe, which offer competitive prices and high-quality services. Another popular choice is Asia, especially India, and China, where there are big tech hubs. In any case, it is important to ensure that the chosen location has the appropriate experience and skills to meet the demands of your project.
Stories of companies that succeeded with a nearshoring partner
Choosing the right nearshoring team can be critical to the success of your business. Therefore, it is worth thoroughly researching potential partners and checking what projects they have already implemented and what opinions their clients have. Here are some examples of companies that have used nearshoring and achieved success as a result:
- Slack – a popular application for communication and work organization decided to cooperate with a nearshoring team from Colombia. Thanks to this, it was possible to increase work efficiency and accelerate product development.
- Basecamp – a well-known project management platform has also decided on nearshoring. The choice fell on a company from Poland, which allowed for significant cost savings and increased quality of work.
- Samsung – one of the largest electronics manufacturers also uses nearshoring. It cooperates with teams from Eastern Europe, which allows for cost savings and increases the speed of implementing new solutions.
Summary
Nearshoring can bring many benefits to your company, such as cost savings, increased work quality, scalability, and efficiency. However, it is worth carefully researching potential partners and choosing the best nearshoring team that will have the appropriate experience, qualifications, and linguistic and cultural availability. Thanks to this, you can achieve success, like many other companies that have decided on this business model.
