Nearshore outsourcing is a great way for businesses to save costs while still keeping projects on track.
From cost savings to overlapping work hours, it offers many advantages – this is why nearly 80% of U.S. companies are considering nearshore outsourcing.
Still, that doesn’t mean every nearshoring choice will be beneficial for you.
Here’s the catch: partnering with the wrong company can result in rising expenses and unhappy clients – exactly what you don’t want as a business owner!
Keeping all this in mind, I will answer key questions in this blog, such as:
- What are the common nearshore outsourcing mistakes?
- How can you avoid making the same mistakes as others?
So, without further ado, let’s get started!
So, What Actually is Nearshore Outsourcing?
Let’s start with the basic definition (don’t worry, I’ll keep it simple).
Nearshore outsourcing is when you delegate your projects/services to a third-party service provider in a nearby country.
For example, if your company is in the U.S., you might choose a partner in Mexico or another Latin American country instead of going all the way to India or the Philippines.
And here’s why that matters: working with teams in a neighboring country usually means lower costs and fewer headaches for you.
Why is that? Because time zones are the same, conversations are smoother, and cultural differences don’t get in the way.
Don’t trust me? Here’s a stat for you: 90% of companies that join hands with a nearshore BPO company report better results.
10 Common Nearshore Outsourcing Mistakes You Must Avoid
Okay – now you know what nearshoring is, and why companies go for this approach.
But the process of choosing a nearshore outsourcing partner is not that easy.
Choosing the wrong service provider can prove bad for your business – you’ll face communication issues and missed deadlines.
Here, I will explain the most common nearshoring mistakes to help you avoid such situations.
1. Not Defining the Project’s Scope
Joining hands with a service provider without properly defining your goals is the worst possible mistake – it’s like cooking a meal without even knowing the recipe!
Without a properly defined project scope, you may experience the risk of wasted time, lower Customer Satisfaction Score (CSAT), and higher costs.
In fact, 70% of outsourcing projects fail due to poorly defined objectives – a risk you cannot afford!
How to Avoid this Mistake
- Document your project goals and scope before onboarding
- Properly define expected outcomes
- Clearly mention the Key Performance Indicators (KPIs)
2. Focus on Cost-Cutting Instead of Quality
One of the biggest advantages of nearshore outsourcing is its cost-effectiveness compared to in-house hiring.
But here’s the catch: if you focus only on cutting costs, you may end up with a partner that delivers poor quality and inconsistent results.
In fact, research suggests that most of the time, lower cost is associated with lower quality.
The bottom line is this: affordability matters, but quality of work should always be your top priority.
How to Avoid this Mistake
- Compare multiple service providers, not just the cheapest option.
- Check for client testimonials and case studies.
- Partner with a BPO like HiredSupport that combines low costs with high-quality services.
3. Skipping a Proper Onboarding Process
What if you collaborate with an outsourced team, and then delegate your tasks without proper onboarding?
Well, in simple words, it results in confusion, miscommunication, delays, and lower productivity.
Moreover, research proves that companies with a standard onboarding process record 50% more productivity.
So, this is one nearshore outsourcing mistake you must stay clear of.
How to Avoid this Mistake
- Conduct a proper onboarding
- Arrange an initial meeting to explain the company culture
- Clearly explain your goals and business needs
4. Lack of Proper Communication Channels
You know, one of the main reasons for outsourcing failures? It’s improper and poor communication – surprise, surprise!
Here’s a stat for you: 25% of outsourced projects fail because of poor communication.
While nearshore outsourcing involves similar time zones, it’s still your job to maintain standard communication with the outsourced team and keep track of processes.
How to Avoid this Mistake
- Install dedicated tools like Slack, Teams, Zoom, etc
- Schedule regular meetings without disrupting the routine
- Make sure your team can discuss certain issues with you
5. Setting Unrealistic Expectations
If you expect a project to be finished in a week when it realistically takes months, I have bad news for you: even the best outsourcing partner won’t be able to deliver.
There is a reason why unclear goals and unrealistic demands are among the top reasons outsourcing projects fail.
Don’t let your business fall into the same trap.
How to Avoid this Mistake
- Break projects into achievable milestones.
- Define KPIs and success metrics during contract discussions.
- Set practical timelines instead of impossible deadlines.
6. Lack of Performance Monitoring
Let’s rewind here: outsourcing means delegating tasks to an external team to free up your time and resources…you know, already.
But it doesn’t mean you literally hand everything over and forget about it.
Without performance tracking, you’ll never know if the team is meeting your quality standards or falling behind.
Avoid making this mistake…before it’s too late!
How to Avoid this Mistake
- Conduct weekly meetings to analyze the progress
- Take time to review the monthly performance reports of the team
- Hire a supervisor to ensure accountability
- Install performance monitoring tools (such as Splunk, Assana, etc.)
7. Ignoring Cultural Differences
Even with nearshore outsourcing partners, there might be some cultural differences.
It is also possible that the outsourced team is not aware of the local business ethics and industry standards.
So, instead of ignoring any differences altogether and not paying attention, you must address such topics and make sure there are no obstacles like language barriers, differences in feedback reception, etc.
Remember that 70% of global outsourcing failures are somehow linked with cultural differences – make sure your company is not one of them.
How to Avoid this Mistake
- Do proper research about the culture in your partner’s country
- Document ways to tackle cultural differences
- Educate the outsourced team on your local laws/industry standards
8. Not Paying Attention to Security Measures
Perhaps this is the most critical mistake when it comes to selecting an outsourcing partner.
Imagine choosing a third-party service provider to cut costs, only to find out that later, a data breach has caused massive financial damage to your business.
So, the next time you are looking for an outsourcing service provider, make sure they follow strict security protocols – the average cost of a data breach is more than USD$4 million.
How to Avoid this Mistake
- Work only with partners who comply with GDPR, HIPAA, or relevant laws.
- Use encrypted communication.
- Add data protection clauses in the contract.
9. Micromanaging Your Outsourcing Partners
There’s one thing you must avoid as a business owner: constant micromanagement.
Always remember this rule, whether you have outsourced a service or are dealing with clients yourselves.
Why is that? Well, according to Forbes, 55% of employees claim micromanagement negatively impacted their productivity.
How to Avoid this Mistake
- Focus on results instead of daily tasks.
- Allow the team to operate independently.
- Avoid constant monitoring
10. Choosing the Wrong Nearshore Partner
The point of outsourcing is to free up your time and resources so you can focus on core business tasks.
But if you partner with a low-quality provider, the result will be missed deadlines, unhappy clients, and damage to your reputation.
This is a scenario that you cannot afford as a business owner!
How to Avoid this Mistake
The most important thing is to select a top-ranked BPO company… just like HiredSupport. Their Clutch rating of 4.9 is proof of client satisfaction and the skill of their agents.
And the best part? They offer nearshore outsourcing services starting from just $12 per hour.
Final Thoughts
Nearshore outsourcing is an effective way to cut costs and delegate tasks effectively.
But choosing an outsourcing partner requires proper research and avoiding common nearshore outsourcing mistakes.
Want to make this decision easier? Partner with HiredSupport – we provide reliable, affordable services across multiple domains. Just fill out this form, and our team will get back to you.
