Nearshore offers cost advantages over onsite services.
Companies may decide to nearshore some of their IT work because they want to cut costs,
and nearshoring enables this by sending work to another country where workers will generally be paid lower
wages. However, unlike offshore IT outsourcing, which involves sending IT work to an overseas location that
is much further away (e.g., work from U.S. companies being sent to India), nearshoring (e.g., sending work from
the U.S. to Mexico) offers the following benefits:
Satisfactory skill sets
Easier coordination
Geographical proximity
Risk mitigation
Fewer time zone differences
More cultural and/or language similarities
Usually, workers in nearshore companies will be more highly trained than those in the ubiquitous sourcing companies
in places like India, China, and Malaysia (which remain the top three IT outsourcing destinations worldwide). It’s also more likely
that the workers will be awake and alert if they aren’t being made to work in the middle of the night to fit another country’s hours
of business.
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These conditions may be crucial to a company that is outsourcing a complex IT project and requires a lot of
ongoing communication between its internal team and the nearshore team it is working with, or frequent travel to
the nearshore destination.
Usually, workers in nearshore companies will be more highly trained than those in the ubiquitous sourcing companies
in places like India, China, and Malaysia (which remain the top three IT outsourcing destinations worldwide). It’s also more likely
that the workers will be awake and alert if they aren’t being made to work in the middle of the night to fit another country’s hours
of business.
ONSHORE
Outsourcer typically located in the same country as client. Services delivered using combination of onsite
and remote resources.
NEARSHORE (With Aumenta)
Proposition closely related to offshore but uses similarities to client location and convenience to compensate
for relatively high cost.
OFFSHORE
Use of foreign location to deliver benefits not available to local providers.
(e.g., Low cost base, access to skills). Aided by advances in technology, offshore is maturing from being a cost-based proposition
to one that can offer high quality also.
The nearshore paradigm offers cost advantages over onsite services and eliminates the offshore
disadvantages due to language and cultural commonalities attributed to proximity, it’s a low-risk approach.