Nearshoring: What solutions does it offer?

A man and a woman working with a nearshoring partner in Mexico

Have you ever wondered why big and small companies are choosing to outsource some of their services? Is it cost-effective? How do they keep up with their companies productivity while part of their team with a nearshoring partner? 

Well, outsourcing is an effective model for companies who are looking to decrease their operating costs while maintaining or increasing productivity. Companies can choose from three types of outsourcing: onshoring, offshoring, and nearshoring.

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


What you need to know about it


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

Nearshoring providers are able to guarantee fewer time-zone differences, cultural discrepancies while protecting your intellectual property. The proximity between countries leads to faster communication and increased customer satisfaction.

According to this article published by Forbes, Mexico has proven to be a great nearshoring provider, by offering technology centers and specialized teams to U.S companies that struggle to find the right talent and are looking to optimize their costs.

So, you have now decided to hire a third party to look for the talent your operation needs, but what are the benefits between hiring a nearshoring or offshoring partner? 

Understanding the differences between them is crucial.


Nearshoring vs. Offshoring


Many companies have worked with offshoring providers since a few decades ago. Brazil, India, and China, for instance, have played a huge role in the outsourcing industry due to call centers.

But as the industry evolves, companies have found that geolocation is an important factor to take into consideration when choosing a BPO provider. 


The pros and cons 


Lower costs: As the market expands, competition rises. Offshoring partners offer cost-effective solutions for their customers. That often includes reduced taxes.

Wide variety of choices: Offshoring allows you to choose from a wide variety of talent. They are flexible and can offer their clients options to expand their team.

Higher coverage: Time-zone can both benefit and prejudice a company. For instance, you can have work done while you are sleeping, meaning you can always be one step ahead of the operation. But it can also lead to communication problems and coverage issues.

More regulations and control: Being far away from your team can affect your operation, therefore there is a need for more control and regulations. Flying long hours isn’t always possible.

Communication gaps: Not being able to hold meetings with your team can lead to communication issues, trouble being on the same page. This is why your workflow should be extremely detailed so it is easy to perform the job without management or supervision.


The pros and cons 


Proximity: Moving some of your operations to a nearby country can insure more face-to-face meetings in less time. Similar time zones can be strategic when working with remote teams.

Less supervision: Working similar hours as your remote team can benefit communication meeting up with the expectations of your company and clients.

Less Cultural discrepancies: Neighboring countries can avoid cultural differences. By being close to each other, language barriers are dissipated.

Lower costs: Lower operational costs and reduced wages.

Specialized Talent Pools: There is a broad talent pool to choose from, people tend to specialize in their areas of expertise, providing your company with a qualified team.


Why are companies choosing nearshoring solutions for HR management?


Recruitment processes and HR management can be tough for companies to handle, the rapid changes in the industries and the rise in the use of technologies are forcing companies to come up with new strategies to attract top talent to their organizations.

 These processes can be time-consuming for your business as a result, many companies are opting to nearshore. 

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


These are some of the services Nearshoring partners are able to offer you:

  • Employee experience to improve employee engagement and retention.
  • Company culture to establish your values and vision.
  • Competitive compensation and benefits to retain and attract the right talent.
  • Learning and development for employees.
  • Onboarding processes
  • Performance management and 360º evaluation
  • HR software and technologies

Choosing the right HR nearshoring provider can take your company to the next level, by assuring customer satisfaction, improving internal processes, and reducing operational costs.


Mexico: The ideal Nearshoring partner


Now that you know the benefits of services, it is time to choose your partner. Mexico has had a huge development in different sectors such as nearshoring, this is why US companies have opted to move their production and operations there. 

Different companies have been able to attract new investments and create new jobs thanks to Mexican nearshoring expertise. Canada and Mexico have become the main destinations for American companies to carry out nearshoring.

The proximity to the US is a huge advantage when it comes to working with remote teams. Mexican law can ensure the protection of Intellectual property rights and issue work visas easily when needed. 

Check out our services and find out how many companies have benefited from having us as their nearshoring partner. Wexpand has the expertise your company is looking for!


Reach out today to find out about our all-inclusive solution!

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