What is Nearshoring?

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Understanding what is nearshoring, a term used in staffing and human resources, is crucial. . It is closely related to “offshoring” a business’ operations to another country where the labor is as highly skilled but costs much less. The difference is that nearshoring is much more efficient because it identifies workforces that share similar values and time zones but are closer in proximity to their US-based employer. Outsourcing back-office positions enable companies to optimize costs, scale their businesses, and improve profitability. Lean Staffing Solutions is a nearshore service provider and understands the nuances involved in the transportation and logistics industry. Keep reading to learn more about nearshoring and its advantages.

Increase revenue and reduce operational costs

Outsourcing is one of the best practices proven to be a great business model for increasing profit margins, reducing operational costs, all while maintaining high-quality back-office services. Nearshoring, similar to offshoring, allows companies in any business market to adjust resource allocation. Nearshoring provides organizations the ability to manage a high level of control over their production costs by enduring the cost of doing business at low-cost. Nearshoring conquers several constraints of offshoring such as time lags, variation in local employment practices, and other oversights. Nearshoring is continuing to grow and become a feasible alternative when compared to offshoring, by focusing on proficient service areas as well as encouraging cultural, geographical, and long-term cost savings.

Shared culture and communication

Shared culture and location are undoubtedly the biggest advantages of nearshoring. With smoother, more efficient communication and date planning, comes a product that is quick, easily set-up, and offers quality service with a lower chance of having miscommunication dilemmas along the way. While the work culture of each country can impact how companies communicate with each other, if both companies share the same language, then the two companies can work much easier. This is far more likely to happen with nearshoring, as both parties share equal languages, time zones, and some holidays, allowing operations to be efficient. Having exceptional college-educated, bilingual employees who work and communicate fluently with you, while still being available during your working hours, will yield a collaboration that is closer and stronger, all while providing quality operational control.

‍Lean Staffing is the nearshoring solution  that answers the question of 'what is nearshoring?' by specializing in the transportation and logistics industry, working with US-based companies to provide back-office solutions, enabling our clients to optimize costs, scale businesses to their full potential, and improve profitability. To learn more about what our back-office solutions can do for you, visit our website at leanstaffing.com.