What is Nearshore Outsourcing?
Nearshoring outsourcing is the practice of getting work done by people living in neighboring countries instead of hiring companies within your country. Companies often acquire Nearshore companies to help in software development, technical support, and call center or customer care jobs.
What to Look Out for When Outsourcing Nearshore Services
Many companies are looking to nearshore service providers for a variety of services. The emergence of the Corona pandemic made it even more necessary to outsource services from nearshore companies. Here are a few things to look out for in a nearshore outsourcing company.
1. Can the Company Deliver the Volume of Services You Require?
Your nearshore partner should be able to meet your companies needs without straining or incurring extra costs. Large companies should go for large nearshore companies as they are more likely to comfortably deliver the agreed services or products. Please do your research and find out, by measurement, what your company needs and compare it to what the nearshore company can manage.
2. How Much Time Do You Have?
Some nearshore companies may not deliver your services or products within the time frame you want. When discussing the terms and conditions with a potential nearshore service provider, be clear about your timeline so everyone knows the amount of work required.
3. The Company’s Location
The location of a nearshore company can fundamentally inhibit their ability to provide your company with the required services.
4. The Required Amount of Training
The amount of training and experience your nearshore company can offer is a quality you should look out for. Your nearshore service provider should provide you with a well-trained workforce with the necessary expertise in the area you are interested in.
Nearshoring outsourcing should not mean that you compromise on the quality of services offered or products delivered. This is why you need a well-trained and experienced team to provide the best possible quality for your company. Your company should constantly check the quality of work the company is delivering to ensure the final product meets the target quality. It is essential to ask for a probation period to analyze the progress of a project, turnaround times, and project completions before fully committing to a partnership. If you are looking for a software development company, you need to look at their portfolio. What other projects have they handled and what is their success rate?
6. Your Price Range
Some nearshore companies may come with a price tag your company can not match. You may also be asked to pay for services that do not match value for money. To analyze what the company can afford and what you are paying for, you may need to visit the nearshore company in person. Your visit will enlighten you on many aspects of your potential nearshore partner, including company culture, capacity, and location.
The Benefits of Working with a Nearshore Software Development Company
· Close Geographic position
Nearshore outsourcing reduces the hassle of travel and communication that your business would face if you opted for offshore outsourcing. In addition, nearshore outsourcing is likely to be a country with a similar time zone making communication easier.
Nearshoring can be more cost-effective depending on the type of job you have outsourced and the location. Software development is likely to be less costly as an outsourced service compared to a call center.
· Increased Talent Acquisition
By acquiring the services of a nearshoring outsourcing company, you get access to a broader talent pool compared to sourcing talent from your country alone. High-quality service providers in nearshore companies are highly likely to improve your company’s results.
The Disadvantages of Nearshoring
· Language Barriers
People from different countries often speak different languages. The language barrier makes communication harder and can lead to costly misunderstandings as information is lost in translation. In addition, language barriers are often accompanied by cultural differences that can make maintaining a working relationship hard. However, it is most likely that countries near each other have cultural similarities that foster a working relationship.
· Less Convenience
Some companies may experience an inconvenience when different teams have to work in separate locations. Software development outsourcing faces this problem because both companies need to communicate and troubleshoot at a moment’s notice. However, if both companies invest in high-tech communication devices, this should not be a problem.