Nearshoring for small and medium companies

Small and Medium Company owner planning the expansion with a nearshoring company.

 

With all the changes and restrictions around the world, it is no longer necessary to have all of your employees under the same roof. Working remotely has turned out to be beneficial for some organizations as productivity levels have risen while costs reduce. 

Businesses have opted for nearshoring, as they have been able to maximize production/ productivity while keeping their processes as smooth as possible. Nearshoring allows businesses to leave part of their operations in the hands of specialists to be taken care of.

Before we get into details, let’s review what nearshoring is.

 

What is nearshoring

 

Nearshoring is a type of BPO service where a third-party organization provides services such as HR management, marketing, customer service, manufacturing, shipping, IT, logistics, etc. to an organization located in a neighboring country.

Nearshoring is a great strategy to reduce long distances and time-zone differences between a company and its remote team while reducing costs and increasing productivity.

The proximity between the business and its nearshoring partner can ensure effective communication and reduce the risk of operative mistakes.

 

Why is nearshoring becoming relevant?

 

Nearshoring can offer great benefits to both companies and their outsourcing partners. Tech companies, have found that nearshoring is not only cost-effective but can provide talented specialists in different industries.

Its proximity to close home markets allows companies to make quick and effective decisions about their operation and services, providing cost savings and lower risk compared to other outsourcing models like offshoring.

Aside from reduced costs, businesses are choosing nearshoring because it allows them to find experts and specialists otherwise unavailable in their area.

A huge benefit of nearshoring is that your remote team will speak the same language as you and have similar cultural backgrounds, reducing the risk of communication gaps.

 

What type of services can companies nearshore?

 

There are many types of services a company can nearshore, here’s a list with a few of them:

 

Specialized services

 

Nearshoring is great when your company needs professional services that are either too complex for your team or because it requires certain certification or a license to work. 

  1. Marketing
  2. Administration
  3. Legal
  4. CAD

IT sourcing

 

If your business is medium or small, it may not have an IT department or easy access to these services. If you have specific technology requirements, nearshoring IT services can make your operation more efficient.

 

Entry-level positions

 

If your business is in need of entry-level positions, nearshoring is a great option due to the huge talent pool in search for entry-level jobs. 

  1. Customer service
  2. Administrative
  3. Scheduling

Project Nearshoring

 

If your team is working on a project, it is also possible to nearshore a portion of that project to specialists, this strategy is useful when the company lacks the time, funds, or expertise to complete the project.

  1. Website redesign
  2. Ad campaigns
  3. Event planning

Nearshoring HR services

 

Recruitment processes and HR management can be tough for companies to handle.

The rapid changes in the industries and technologies are forcing companies to come up with new strategies to attract talent.

But let’s be honest, these processes can be time-consuming for your business. This is why many companies are choosing to nearshore. Nearshore providers are able to offer you different HR services.

These options range from only payroll services to all-inclusive workforce recruitment and management, these depending on the company’s necessities.

Companies need to make strategic decisions to retain and develop their employees.

If your company is in need of HR management services, check out our services and how they will make a HUGE difference in your operations.

 

What you need to take into consideration when nearshoring

 

There are a few aspects to take into consideration when choosing a nearshore partner:

For businesses in the US nearshoring usually involves Latin America or Canada. Make sure your partner is able to provide you with bilingual fluency if it is required in the operation.

Nearshoring partners can become an essential part of your operation, make sure to take your time to choose from different vendors and assess your options.

Once you have trained your new nearshore partner, be ready to delegate a part of your operation, make sure to communicate your feedback.

Take your team into consideration when choosing. Choosing a partner is often a difficult decision to make. Make sure your team is involved in the process.

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