Nearshoring, Offshoring and Onshoring: the most convenient outsourcing

outsourcing strategy

When a company is faced with the need to expand its services or hire new resources for its team, the most obvious solution is to publish an announcement, interview candidates and take the profile best suited to your needs. 

 

In reality, this procedure is not as simple as you might think. In fact, many factors must be taken into account. For example, if a company needs to enhance or implement a service that is not essential to the core business, is it convenient to hire new internal resources? The same goes for technologies that can have an excessive cost. 

 

For this reason, companies are increasingly resorting to outsourcing, that is, outsourcing services or a part thereof. In this way, businesses can use professionals at a lower cost than that of internal implementation. 

 

But how do you choose a BPO partner?

 

When it comes to outsourcing, we come across terms such as “offshoring”, “nearshoring” and “onshoring”. These indicate the geographical location of the BPO partner, a very important factor, taking into account time zones, cultural differences, costs, language skills and many other aspects. 

 

On the web, very often, information is vague and limited, so in this article we will try to shed light on these three models of outsourcing by highlighting the advantages and disadvantages of each. 

Outsourcing: Onshoring

Outsourcing strategy

Onshore outsourcing is also known as domestic outsourcing. It means that the company outsources locally, in the same country where it is located. The main advantage is certainly the proximity, where there is a better control of operations. On the other hand, however, the prices of onshore outsourcing are higher than other types of outsourcing. This feature does not always correspond to better quality. 

 

Additionally, outsourcing within your own country will restrict access to global talent, make scalability and flexibility more difficult, and limit the area of ​​expertise available.

Outsourcing: Offshoring

Offshoring means subcontracting services to a company based some distance away from the company’s headquarters. Normally, offshoring implies outsourcing to a company located on a different continent. The main advantage of offshoring lies in having low operating costs. Another advantage is the hours of coverage that would otherwise be very difficult to manage (night shifts and after-hours). However, outsourcing to a distant geographic location can become problematic, as communication problems can arise (different time zones, difficult to reach, difficult to monitor, inconveniences while traveling, language and cultural barriers, etc.). In addition, lowering costs at the expense of quality of service is anything but a winning business strategy. In the long term, in fact, the choice of low costs over quality will prove to be an expensive solution.

Outsourcing: Nearshoring

As the name suggests, nearshoring means “close” to home, but not quite in the same location. Nearshoring is useful for companies that want constant, real-time collaboration with their internal staff. For a Paris-based company, for example, nearshoring could be achieved with Ukraine, which is just a couple of hours ahead in terms of time zones.

 

While being slightly more expensive than offshoring, nearshoring has several other benefits, such as being in a similar time zone as your partner, having more control over your projects, possessing a similar corporate culture, and having access to a larger workforce. 

 

Outsourcing to a nearshore location allows companies to reduce the risks associated with offshoring.

The strategic choice of the BOP partner

When choosing a partner, certain aspects must therefore be taken into account, such as geographical and cultural proximity, and an understanding of the market in which one operates. This ensures perfect alignment between the service provider and the partner company.

 

We at We Are Fiber provide nearshore services with rigorously selected personnel and with particular technical skills, focused on the specific needs of the company. For this reason, we ensure different ways of collaborating with qualified and affordable teams.

The advantages of the nearshore strategy

As mentioned, the nearshore team resides in a country that is geographically and culturally close to the partner company, a situation that guarantees transparent communication. So, sharing of the objectives to be achieved and total visibility of the project become a reality.

The time zone is the same or just about, so it is possible to organize meetings and business calls quickly or make short trips, obtaining significant savings both in terms of time and money.

Being close culturally and linguistically helps to share market knowledge with ease, so as to plan strategies jointly and in perfect synergy.

The company providing the service can learn more about the features and advantages of the nearshore team which, in turn, is able to understand precisely the aims and objectives of the client partner.

 

Are you seriously considering starting a nearshore project?

 

We Are Fiber is by your side to provide you with all the assistance and information you need. We offer agile nearshore services, including managing remote teams, optimizing processes, and developing strategic projects, so as to adapt to any scenario.

 

In this way, you will not waste time in interviews for the selection of personnel, but, instead, you can concentrate on the core business of your business, with the certainty of having a qualified team and highly technological services available to suit your market.

 

CONTACT US

Email: info@wearefiber.com

Phone (It): +39 024 210 1122

Phone (UK): +44 203 870 4408

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