What Is Nearshore Outsourcing And What Can It Do For Your Company?

Suddenly, the world has become remote. Technology and digital transformation have taken a center stage in organizational strategies. The mission? Adaptation to the current reality.

Things are bound to change for good with the mayhem and collapse. Resilience and discipline are paramount to endure the transitions while adapting. Building and thriving in the new normal will be a challenging task. It may be difficult, but it’s a possibility.

One of the promising solutions is nearshore outsourcing, where there needs to be collaboration at all times.

But what is Nearshore Outsourcing?

Also known as nearshoring, this is the process of designating information technology-related work such as software development to firms situated in nearby countries.

Let us assume you live in the US and want to delegate some work that your inbound team cannot handle to a partner abroad. At the same time, you want to reduce costs and don’t want to stress about time-zone offsets. Therefore, you can seek talent in neighbouring countries.

What Is The Difference Between Onshore, Offshore, and Nearshore

Before choosing any outsourcing option. It is wise to understand the difference between offshore and onshore outsourcing to get a vivid picture of the difference.

Nearshore outsourcing means you reside in the United States and outsource professionals from Mexico, while offshore outsourcing means, you leave in the United States but hire professionals from Europe. Onshore outsourcing means you reside in the United States and hire experts from the United States.

How Does Nearshore Outsourcing Work?

The concept behind nearshore outsourcing is to hire a remote partner who is geographically close to your firm, which assures you of a couple of corporate advantages, such as cultural proximity, logistics, and more.

The main goal is to take projects out of the drawer, scale procedures, and multiply profits. Nearshore strategy is the cheapest way to expand your workforce, accomplish goals and remain competitive.


Here are reasons NEARSHORE can be a game-changer for your company:

Ease of Communication with Your Remote Team

Seamless communication is the cornerstone of a functioning organization. If a team handles tasks individually without sharing outlines, notes, or any kind of feedback, the final products can be a hot mess.

This is not in class where the brightest student could handle the entire science project single-handedly on behalf of the entire class. Teamwork is crucial in delivering quality and error-free software development, and you cannot achieve this kind of communication with an offshore team.

Nearshore teams, on the other hand, do what overseas partners cannot: work during your office hours. You are not sacrificing anything to schedule a meeting or battle time zones. More, the teams’ cultures are similar to allow for comfortable conversations that would otherwise be challenging with foreign teams.

Extended Talent Pool

The truth is, not all countries boast top-notch specialists, particularly in the technology sector. Nearshoring could seamlessly fix that issue.

When you outsource your software development, you enlarge your talent pool by finding more qualified professionals for your projects. For example, Latin America is now famous for producing the best IT experts and has become the most preferred option for nearshore software development.

High Return on Investment (ROI)

Return on Investment is every company’s end goal and it is what has motivated firms to outsource their software development. While offshoring is initially affordable, you might spend more money because of the challenges that arise along the way.

For instance, you may experience underperformance, management problems, poor communication, lack of control, and so on. Nearshoring, on the other hand, might seem costly at first, but guarantees better outcomes and cut costs, considerably.

Intellectual Property Laws are Similar 

If your company’s sole role is to provide software products, protecting your intellectual property is vital. This is often risky for offshoring software development. In some countries, intellectual property laws are feeble, and provide less protection in case property is stolen.

In addition, in nations under authoritarian rule,  you may be worried constantly about the safety and security of your property, especially if the state wants to leverage your technology and take it from you by force.

Here is another advantage of nearshore outsourcing. Most nearshore nations boast solid intellectual property laws and offer the same protection and secrity you would expect at home.

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Christophe Rude

Christophe Rude

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