Nearshore vs Offshore: What is the best shore for me?

by | Oct 1, 2021 | Nearshoring

In the blink of an eye, the world has become remote. Digital transformation is part of every business and corporate strategy.

Creating high-quality services and staying relevant in the market is what every company wants, this is not easy nowadays and that is the reason why outsourcing has been one of the best solutions in the past decade.

Nearshore vs Offshore

What is Nearshore Outsourcing? 

Nearshore Outsourcing is the exchange of services that are obtained in neighboring countries. If a company is interested in hiring specialized talent abroad, it is more convenient to do so in territories that are not too far from your company’s headquarters and it requires a clear and precise communication between teams. Constant collaboration!

What is Offshore Outsourcing?  

Offshore Outsourcing relies on the need for a well-thought-out communications strategy. Cultural differences, time zones and languages ​​make it extremely difficult to coordinate correctly with remote teams, that is why offshore teams tend to focus on independent functions or with very low dependency on tasks, minimizing the need for coordination and making offshore work independent from the rest.

“Do what you do best and outsource the rest.”
Peter Drucker

The world has made the search for talent a much simpler process. With the access to advance technological communication tools, it has allowed us to increase accessibility to each other thus making remote work easier. This has made companies more competitive than ever, and collaboration with outsourcing teams is breaking political, social, and linguistic barriers.  

Nearshore gives us the economic benefits of offshoring, the best talents in the market all coupled with the proximity and cultural benefits of working with the countries close to us. This allows an exponential increase in efficiency compared to other traditional offshoring models.  Even just the elimination of the 12+ hour time difference increases productivity by leaps and bounds. These benefits are key for IT companies who rely on efficient communication and exceptional talent, that is why nearshore outsourcing is the easiest way to remotely expand your team, achieve scalability, and stay competitive. 

With the ever-increasing demand for digital transformation and the need to have access to a myriad of technology skillsets, companies can find themselves caught between the tremendous opportunity for growth and the potential inability to scale their teams fast enough. This can create a bottleneck in your organization and can cause stagnancy.   

Top 5 Advantages of Nearshore Outsourcing 

Proximity and Time Zone 
An important advantage of nearshore development is the ability to engage with your team during business hours. Real–time collaboration is crucial for building up business relationships and allowing for complete agile development. 

Scale your Team
Nearshore partners can augment your team with best-in-the-class talent who have the skills necessary to meet your needs and simplify your enterprise’s remote working strategy. Building your dream team is usually just a conversation away.  

Cultural Affinity
The ability to see things similarly and understand each other’s style of communication can never be understated. Going near definitely brings in that feeling of similarity. Cultural affinity brings your in-house and nearshore teams together, helping minimize communication issues and creating a higher understanding and alignment between teams. 

Intellectual Property 
Protecting your intellectual property is critical. Nearshore countries tend to have very strong intellectual property laws, that resemble the US. Having a US headquarters guarantees you the same protection you count on at home. 

Total Cost of Engagement
The total cost of engagement for a Nearshore partner ends up being equal or less than offshore alternatives, thanks to efficiencies achieved through proximity to the United States. 

There are advantages to both nearshore vs offshore outsourcing, they key is to realize what makes your organization more efficient and allows your team to be on budget and stay on time. 

NTConsult is a leading Global Custom Software Development and IT Staff Augmentation Organization. We build first class solutions for your organization and we augment your team with best in the class resources. 

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