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Advantages of Nearshore Outsourcing

Over the last decade, nearshore outsourcing services have gained significant popularity. For a long time, Asia was the prime hub for outsourcing extremely cheap labour. For companies that need better collaboration, communication, and effective engagement, nearshore outsourcing is indeed the better option.  


Nearshore outsourcing is popularly adopted by companies that follow the agile methodology. Initially, the hourly rates might be a little high, but if you account for every factor that increases the overall ROI (Return on Investment) of the company, nearshore outsourcing is the best way to leverage a few benefits. 




Here are some more advantages of nearshore outsourcing: 

1. Same Time Zone

One of the biggest merits of nearshore outsourcing services is the advantage of working in the same time zone. This is because nearshore outsourcing only allows companies to seek out talent and remote employees from neighbouring countries. Time zones are a tricky feature, especially when they vary significantly for the employee and employer. 


With nearshore outsourcing, none of your remote employees will have to attend meetings and complete important tasks at odd hours. There is also the added advantage of better coordination and productivity when both parties live in the same time zone. 


Besides offering a relatively better plan of action, nearshore outsourcing helps companies stay on schedule without compromising on the quality of work they sought out to receive. It gives companies a medium to bridge the gap between essential talent and the obvious problem that springs up when your valued employees are in a different time zone. 

2. Decreased Operating Costs

The whole point of any kind of outsourcing is to essentially get better talent for much lower wages. Wages for nearshore employees aren’t very high. Nearshore employees who come from developing economies usually ask for reasonable wages, which is considerably less than what it would cost in the US. 


The US Dollar is one of the highest currencies in the world and that provides an auxiliary helping hand to companies looking to outsource their work. Hiring nearshore employees will eventually decrease your operating costs and increase your Return on Investment. 


Not to mention, outsourcing work to nearshore employees cuts down the cost of setting up a physical workspace. Besides reducing operating costs, it also provides your employees with a sense of professional autonomy which will, in turn, lead to increased productivity and superior quality of work.  

3. Integrating Cultural Similarities 

One of the biggest problems of offshore outsourcing is the drastic differences in cultures and lifestyles. Often, many offshore employees end up missing crucial instructions and are not able to relate to the clients. This problem can be solved with nearshore outsourcing. 


With nearshore outsourcing, it becomes relatively easy to find people who share the same language as your internal team. This will open up your company to people with exactly the kind of technical expertise that you require. In the process, this adds more and more people to your team that yields a mutual internal compass culturally. 


Cultural affinity is very high when it comes to nearby countries, and thus, nearshore hiring avoids any major impact of a cultural shift. With nearshore employees, you know that there isn’t going to be a significant difference in the culture. 

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4. Geographical Proximity 

Being geographically close is a huge advantage for companies. Since they aren’t as far away, employers save a lot of money on expenses like business travel, meetings, conferences. Moreover, there is a high chance that the nearshore teams might share the same history as your country. This makes it easier to organize and plan out major projects.  


Visa is another essential factor when the company is planning tours or meet-ups. Since it is easier and cheaper to get a Visa for a neighbouring country than a country on another continent, nearshore outsourcing services are an ideal and effective solution. 


While offshore outsourcing was the ideal option for many companies a couple of years ago, the system was still inefficient and had many flaws. But with nearshore outsourcing services, a company can save a ton of money while ensuring a better quality of work. Just as it happens with any system that has been in place for a long time, it improves as it advances. 


As we move ahead, we can see that there is an inflating dearth of intelligent resources. And nearshore outsourcing can act as an important tool to combat that problem. It helps you make astute use of your hard-earned capital to generate an augmented output. 


Outsourcing work for people closer to you in terms such as geography, time zone, cultural correspondence, helps companies make the training process more hassle-free. It contracts management expenditure while making sure that both your external and internal teams have a pleasant experience working with you.

Olivia Wilson
Olivia Wilson
Olivia Wilson is a digital nomad and founder of Todays Past. She travels the world while freelancing & Guest blogging. She has over 5 years of experience in the field with multiple awards. She enjoys pie, as should all right-thinking people.
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