There are different types of BPO services, to fully understand what nearshoring is, you need to understand what business process outsourcing is.
BPO is a resource administration technique where companies or organizations contract external service providers or third parties to take care of a specific area of their operation.
Many businesses around the world are partnering with BPO providers to get rid of time-consuming tasks and reduce costs by outsourcing operations. The only difference between all types of outsourcing is the contractor’s location.
Today we are going to be reviewing what nearshoring is and why it is gaining popularity around different businesses in the world.
What is nearshoring?
Nearshoring is a type of outsourcing where a third-party organization provides different kinds of services to a company that is located in a nearby or neighboring country.
An example would be an American clothing line that is looking to reduce its operational costs so they decide to move its manufacturing process to Mexico. The landed cost is therefore reduced drastically by partnering with this manufacturing company.
Many companies have found that by working with nearshoring partners not only have their costs been reduced drastically but their operation has been optimized because they have a team built with the right talent.
Benefits of advantages
Working with nearshoring companies provides you with a lot of benefits, their geographic location makes it a lot easier for businesses to visit their team while having minor changes within time zones.
One of the most interesting aspects of nearshoring for companies is reducing costs without sacrificing efficiency. Nearshoring has been proven to increase a company’s productivity levels by allowing it to focus on the rest of its operations while the rest is taken care of.
A huge perk of nearshoring is the talent pool expansion, this means that a company can hire incredible talent for its operation. Whether you are looking for a specialized IT developer or a skilled customer service agent, your neighboring country likely has a lot of talent to offer you.
Differences in values and culture can impact your operation when your outsourcing partner is in a country far away from yours, nearshoring partners guarantee a cultural match and a common set of values.
Why are companies choosing nearshoring?
There are many reasons why companies are choosing nearshoring aside from cost benefits, here are a few of them:
- Proximity to their teams
Businesses need to be able to visit their teams every once in a while to check up on their operation and have an effective communication channel, nearshoring partners are usually just a couple of hours away.
- Language alignment
A huge benefit of geographical proximity is that there are no language barriers. Nearshore companies can assure they will hire people that are fluent in your language.
- Quality and Expertise
Sit back and focus on your operation while your nearshoring partner takes care of the rest. Your remote team will be full of specialized people who will ensure quality and deliver the results you are looking for.
There are many processes you can outsource, HR management, IT development, Customer service, Sales, manufacturing processes, you name it. Your nearshore solution will guarantee expertise in any of these operations.
So is nearshoring the right solution for every business?
There are a few common misconceptions regarding nearshoring, businesses often feel it is a very complicated process because of the distance between them and their nearshore partner. But it is far from difficult.
Nearshore solutions provide you with a lot of tools to have an effective communication channel between you and your team. With effective training, the operation will be able to meet your company’s standards.
Nearshore solutions give specialized training to your team, and cater to your needs, if you ever feel like something in your operation isn’t running smoothly, your nearshore partner is able to offer you different solutions to address the issue.
Our nearshore solution is designed to satisfy your company’s needs, we offer you a carefully crafted process that can assure your operation will run as smoothly as possible.
Our nearshore business model facilitates communication with your team and allows you to take charge of your operation in a stress-free way.