Nearshore Outsourcing: What is It and How Do You Use It?

“Outsourcing” refers to contracting work to an outside party like a freelancer or a BPO organization. Services like software development and customer assistance that fall outside of a company’s core strength or would be too costly to handle in-house are examples of the kinds of tasks that are commonly outsourced in particular sectors. However, delivery time, service costs, and accessibility can affect where you choose to outsource.

Because of the proximity, shared language, and time difference, nearshore outsourcing is an excellent option for organizations. What about the costs and benefits of using a neighboring country rather than one’s own or another? There are so many top nearshore staff augmentation companies available in the market. Tecla is one of them. Let’s evaluate nearshoring to see how it stacks up against other forms of outsourcing and where it could be most advantageous.

Nearshore Outsourcing

Nearshore outsourcing, in its most basic form, is working with a contractor based in a neighboring nation rather than staffing in-house. Below, we’ll compare it with onshore and offshore outsourcing to better understand the differences. A corporation in the United States may, for instance, contract with an outsourcing provider located in Mexico, Honduras, or another Latin American country.

Western European companies sometimes seek to outsource software development to Eastern European countries like Romania. In addition to saving money, nearshore outsourcing also improves productivity. Finding an outsourcing partner in a neighboring nation might save money compared to working with a local service provider.

How Do You Use It?

The first step in nearshore outsourcing is determining the tasks that will be outsourced. An on-demand outsourcing approach allows you to hire workers whenever you need them, making it ideal for handling low volumes of jobs like customer service inquiries. This might help reduce labor expenses and facilitate periodic staffing adjustments.

However, suppose you’re a young company with sophisticated outsourcing requirements. In that case, you might want a separate team that deals only with your company and works closely with your in-house employees. This guarantees that your nearshore partners are accessible throughout your business hours and aren’t juggling too many tasks simultaneously.

When deciding on an outsourcing partner, it’s crucial to inquire about their hiring and assignment processes. You may wish to meet potential employees in person before hiring them for a position in customer service over the phone.

Distinguishing Between Nearshore and Offshore Outsourcing

How about expanding your search to include offshore outsourcing and nearshore service providers? It all comes down to what you value most and what your business aims to grow. Labor expenses in nearshore locales like Brazil and Argentina can be cheaper than in popular outsourcing hubs in Southeast Asia. Furthermore, supporting employees in different time zones allows you to provide service to customers around the clock. Real-time cooperation might be difficult when people are in different time zones.

You may want to look locally if your DevOps or software engineering team requires tight collaboration with your outsourced partner. When deciding between nearshore and offshore outsourcing, it’s essential to consider factors, including the country’s intellectual property laws, customer data security, and online access. You can be more prepared by creating corporate regulations and buying more tools.

Final Thoughts

After learning the answer to “what is nearshore outsourcing?” and how it works, you can better evaluate whether or not this strategy is suitable for your business. Nearshore outsourcing might be the best option for a company looking to save expenses and boost the quality of its contact center. A good nearshore call center will have enthusiastic and competent representatives, making you feel good about having them represent your company.