What Is Nearshoring and Why Is It Popular These Days?

In recent years, technological jobs have undergone a revolution, and what was once done only on-site is now possible remotely, thanks to nearshoring. This service has grown in popularity as a cost-effective way to obtain digital transformation services.

If this is the first time you are evaluating taking the opportunity to use this service, or if you’ve had a negative experience, this article will explain what nearshoring is, how you can benefit, and what you can expect from this outsourcing approach.


About the Nearshoring Definition

Nearshoring refers to an outsourcing model in which a company’s work or processes are outsourced to a nearby provider, such as a country on the same continent.

It is also referred to as regional outsourcing since it involves countries in the same outsourcing destinations.

Companies can benefit from the advantages of working with reduced labor costs, lower transportation costs, and access to a skilled talent pool.

In addition, nearshoring allows businesses to overcome the linguistic and cultural obstacles that often arise with foreign outsourcing.

Outsourcing these services has grown in popularity over the past few years. However, businesses emphasizing IT have much to gain from adopting such practices.


What Is Nearshore Outsourcing Main Function?

The main function of a nearshore outsourcing company is to help businesses expand their operations that can no longer be provided on-site but from one or different nearshore locations.

This type of outsourcing allows companies to hire skilled workers from a nearby country while maintaining the same quality of service.


These Are the Benefits of Nearshoring

Nearshoring has several agile methodologies, making it an excellent option for businesses looking to outsource specific processes or job functions. These consist of the following:

  • Lower costs in labor, transportation, and other expenses. 
  • A greater level of trust between the client and provider due to cultural similarities. 
  • Access to skilled personnel who are more familiar with the latest technology. 
  • Reduced risk of data loss due to compliance requirements. 
  • Improved communication and collaboration between teams. 
  • The ability to scale up or down quickly and easily.


Successful Nearshoring Examples (To Become One of Them)

Large to medium companies opt for creating strong business relations with a nearshoring partner with amazing results thanks to the improvement seen in the results of each strategy tailored to their objectives. Nearshoring with the right provider is a reliable way to improve processes and become better.

Let’s see some examples of positive experiences one can expect from nearshoring:

  • An automotive company that needed to get its machinery in line with modern technology for digital transformation found a great cost-saving measure in nearshoring. 
  • A software development house saw incredible gains when it opted to outsource its web development needs to a nearshore provider. 
  • A medical device company needed to migrate its legacy system and found a reliable partner in nearshoring to get it done seamlessly without hiccups. 
  • A large financial institution was able to reduce its costs and improve customer service by outsourcing its customer support needs to a nearshore provider.


Nearshoring vs. Offshoring: What Is the Difference?

Nearshoring and offshoring are both forms of outsourcing, but they differ in some ways.

Nearshoring involves outsourcing to neighboring countries or countries with geographical proximity, similar time zone, and culturally similar.

On the other hand, offshoring is done with countries on different continents or with a large time difference between the business and the provider.

These two concepts have one common goal: providing high-quality services at a reduced cost. But while nearshoring involves a smaller time difference, offshoring usually requires more effort to manage the project due to cultural and language barriers.


Novashore: Helping Companies Reach Their Goals

At Novashore, we understand the importance of digital transformation for businesses of all sizes. That’s why we provide nearshoring solutions tailored to your specific needs. 

Our team of experts is dedicated to helping you reach your goals with the highest quality standards and technology to get the most out of your investment.

We focus on a 3-Step Screening process consisting of

  • English Interview
  • Technical Interview
  • Cultural Interview.

In us, you can find a safe, reliable, and problem-solving partner with agile methodologies to integrate seamlessly with our client’s in-house teams and business operations.

Call us and let us help you lead digital transformation.

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