Four people looking at a computer
Our Company

Top 6 Benefits of Nearshore Outsourcing

Kathy Monroy

June 28, 2022

As companies search for growth strategies to overcome the significant financial and structural setbacks left by Covid-19, nearshore outsourcing becomes one of the most effective ways to get back on track quickly and without a substantial cost increase. 

In fact, according to research conducted by Zippia, 66% of U.S. companies with 50 or more employees outsource, while 29% of U.S. companies with fewer than 50 employees outsource. Furthermore, 68% of large U.S. consumer products involve outsourcing in at least one department of their organization.

Nearshoring is not new, but it has become a strategic move for companies looking to overcome the current labor shortage and stay ahead of market fluctuations. 

What is nearshoring?

But before we continue talking about the benefits of nearshoring, let’s talk about what it actually means.

Nearshoring refers to extending a business’ operation to a country that is close in proximity with similar time zones, cultures, and values, giving them access to highly skilled professionals at a lower cost.  

Benefits of nearshore outsourcing

There are many benefits from using nearshoring services. Let’s talk about a few.

        1. Availability of qualified talent

Considering the current labor shortage, finding suitable talent for your business has become a headache. With a nearshore partner, you can access top employees eager to work and boost their professional careers by being part of a U.S.-based company.  

Many positions are not attractive to the U.S. labor pool because they are, in many cases, repetitive and time-consuming tasks. But for professionals in these countries, these positions help them grow and excel in their career path, improve their English proficiency, and learn more about the work culture in the U.S., which ultimately turns them into well-rounded, competitive professionals.  

        2. Cost reductions

This is one of the most significant benefits of nearshoring and one of the main reasons companies actively search for a nearshore service provider. According to the global outsourcing study by Deloitte, 70% of companies cite “cost reductions” as a motivation to outsource.

Nearshoring back-office or other unwanted professional positions in the U.S. allows companies to optimize costs and exit the attrition cycle. The main reason is that talent in these locations is not as expensive as in the U.S. Wages are some of the highest expenses companies face; therefore, hiring professionals in countries where labor is inexpensive allows them to reduce costs significantly.  

According to the Harvard Business Review,  you can save 20% to 30% by outsourcing non-core business processes such as billing and payments, payrolls, recruitment, lead generation, and others. This is just by outsourcing back-office positions. Additionally, companies can save much more when nearshoring in areas like software development, marketing, and other professional functions.

        3. Streamlined workflows due to time zone similarities

As mentioned before, nearshoring considers countries that are near to its parent company in the U.S. Therefore, time zones are similar. A maximum difference of one or two hours is less of an issue than eight, ten, or twelve.  

Being in the same time zone means you’ll be able to communicate with your nearshore team effectively, and tasks that you consider urgent can be addressed during your same work shift, boosting overall efficiency and productivity.  

Both your teams, the one in the U.S. and the one in your nearshore office, can collaborate seamlessly and solve problems much faster.  

        4. Control over operations

One of the main concerns of company leaders is losing control over their operations and not being able to swiftly manage their outsourced team just like they do their U.S. team. With nearshoring, organizations can oversee their teams effectively due to ease of communication thanks to the proximity to their satellite office and the adoption of new efficient digital channels of communication like teams, Google meets, Zoom, Slack, and many others.  

        5. Cultural affinity  

Even though having a culturally diverse team incentivizes innovation and better results, significant cultural differences can cause misunderstandings.  

Accessing nearshore services means you’ll be working with a like-minded team with a very similar culture, values, and social norms. At the end of the day, this will make communication easier and avoid any uncomfortable workplace situations.

        6. Time to enhance your services offering

As your nearshore team takes care of the back-office, time-consuming tasks, and other non-core areas of your business, you’ll get back the time you need to focus on strategies to enhance your service offering.  

By partnering with the right nearshore services provider, you’ll be able to save on costs and invest them in your company’s areas of improvement. Additionally, you’ll rely on a team of qualified professionals who understand your business thoroughly, so you do not have to worry about things being mishandled.  

Working with a nearshore outsourcing company gives you the talent you need to overcome the labor shortage, helps you reduce costs, enhances communication and overall processes, and gives you back the time you need to focus on your business.  

At Lean Solutions Group, we provide exceptional nearshore services by staffing professionals for back-office tasks, professional positions, software development, marketing specialists, recruitment, and more. With over 10 years of experience in workforce optimization, we are sure we’ll help your business hire the right talent, control costs, scale seamlessly, and improve overall profitability.

Related Posts