As a business owner, managing in-house teams and various projects on your own can sometimes feel too difficult and too expensive.
That’s where outsourcing can help you – you allocate tasks to an external team to save your time and money.
But here’s the tricky part: you have three types of outsourcing to choose from:
Onshore and offshore outsourcing are pretty common terms….But what is nearshore outsourcing? How is it different from the other two? And how to choose the right outsourcing partner?
Sounds confusing?
Don’t worry – you’re in the right place. By the end of this blog, you’ll have all the answers.
So, let’s get started!
So, What Exactly is Nearshore Outsourcing [And Why You Need To Know About It]?
Let’s start with the basic definition first – no boring stuff, I promise!
Nearshore outsourcing means handing over your projects or services to a Business Process Outsourcing (BPO) provider in a neighboring country.
So, if you are in the USA, you can contact an outsourcing service provider in a neighboring country, instead of partnering with an offshore company in India, the Philippines, etc.
Why does that matter? In simple words, it makes communication easier and reduces the chances of language barriers.
Because when everyone is speaking the same language – like English – tasks get resolved much quicker, don’t they?
But, How Does Nearshore Outsourcing Work?
Imagine you own a business in California, USA.
Now you want to expand your business, but there’s a problem: hiring an in-house team would prove too expensive.
Meanwhile, you don’t want to outsource to a service provider on another continent – offshore outsourcing is not that effective in this case.
So what do you do? You reach out to a BPO service provider in Canada.
Since Canada is a neighboring country, the time zone difference is negligible – communication becomes smoother as a result.
Now, this approach has multiple benefits:
- You focus on core business goals while the outsourcing team handles tasks.
- The team is in a nearby location, so there are no cultural clashes and language barriers.
Don’t trust me? Here’s a stat for you: businesses that prefer nearshore outsourcing recorded a 30% reduction in project completion time.
Nearshore vs Offshore Outsourcing [Similar Idea, Different Approach]
By now, you know exactly what nearshore outsourcing is. But you shouldn’t confuse it with offshore outsourcing.
In this section, I will explain the differences between the types of outsourcing:
1. Cost Savings [Spoiler Alert: Offshore Outsourcing Wins Here]
Cost is one of the biggest differences between nearshore and offshore outsourcing.
If you partner with an offshore BPO company in a country like Pakistan, you can take advantage of lower labor costs.
On the other hand, if you live in the U.S., Canada, or Europe, working with a nearby outsourcing provider typically means higher rates compared to offshore BPO companies.
For example, labor costs in Austria are three times higher than those in China.
While we are on this topic, just to let you know that HiredSupport provides nearshore outsourcing services starting from just $14 per hour!
Winner: Offshore outsourcing
2. Communication Quality [Which Team is Easier to Work With]
With offshore outsourcing, teams are often far away, which can create challenges.
Agents may not fully understand your language, culture, or work style, making communication and collaboration more difficult.
On the other hand, nearshore outsourcing helps avoid these problems. Working with a neighboring country means similar cultures, fewer misunderstandings, and smoother workflows.
For example, most European countries share the same currency, follow similar business practices, and often use English as a common language.
This means you get a better Return on Investment (ROI) by collaborating with a nearshore outsourcing company.
Winner: Nearshore outsourcing
3. Level of Experience [Why Offshore Outsourcing Gives You Top Talent]
Suppose you have two options:
- Choose from a pool of global talent
- Select a team only from a limited number of neighboring countries
Can you guess where I am going with this?
Of course, with offshore outsourcing, you get access to a much larger pool of talented teams, and this will help your business in the long run.
Winner: Offshore outsourcing
Benefits of Nearshore Outsourcing You Should Know
Want to know more about the advantages of nearshore outsourcing? Keep on reading to explore more pros of nearshore outsourcing:
1. Working in the Same Time Zone [How it helps you]
If you partner with a nearby outsourcing company, it results in agents working in similar time zones.
This means communication feels almost like working with an in-house team.
The result? Issues are spotted and resolved faster, leading to better workflow efficiency and a higher Customer Satisfaction Score (CSAT).
2. Saves You Money
Stats show that almost 60% of companies outsource mainly to cut costs. So cost saving plays a major role when it comes to outsourcing.
This is where nearshore outsourcing shines – it saves you from the high expenses of recruitment, onboarding, and maintaining a full in-house team.
Simply put, nearshore outsourcing allows you to spend less money compared to in-house hiring.
3. No Language Barriers [You Hire Teams That Understand You]
Imagine your agents speaking the same language as you and understanding your culture.
That’s one of the biggest advantages of nearshore outsourcing: your team can speak the same language and understand your communication style.
The benefit? There is no communication gap or misunderstandings, which ensures smoother communication.
With nearby outsourcing, you’ll find that issues are resolved quickly if you can communicate with the team in the same language.
How to Choose a Nearshore Outsourcing Partner?
Now you know why nearshore outsourcing is a great choice to delegate projects and save your time and money.
But the real question is: how do you pick the right partner? Here are three factors to keep in mind:
1. Company’s Experience and Track Record
First and foremost, verify the track record of the outsourcing companies. You can search online for clients’ testimonials, case studies, and user reviews to get a clear picture of the outsourcing company.
For reference, here are some of the reviews of HiredSupport showing how our clients are happy with the work we have delivered.
Also, they have an overall rating of 4.9 on Clutch.
In short, checking client reviews is a great way to verify the nearshore company’s track record.
2. Security Measures
We are living in a world where cyberattacks are becoming more and more common.
This is why you should only trust an outsourcing company that takes proper security measures and ensures there are mechanisms in place to avoid phishing attacks, malware, etc.
Here are some of the security measures a reliable nearshore outsourcing company should implement:
- Multifactor authentication
- Regular security audits
- Secure version control systems
- End-to-end encryption
After all, you cannot afford a security breach costing you financial losses and reputational damage!!
3. Comparison of Costs
Before finalizing a deal, make sure you are fully aware of the nearshore company’s pricing plan and overall cost structure.
Make sure you trust a partner with transparent pricing models – don’t fall for unreliable outsourcing companies that charge you extra once the deal is done.
Why Choose HiredSupport as Your Nearshore Outsourcing Partner
As a reliable nearshore outsourcing company, you can trust HiredSupport to provide exceptional services in multiple domains.
Thanks to the expertise of our agents – who are available 24/7 – we have a track record of delivering projects on time while ensuring a high Customer Satisfaction Score (CSAT).
With HiredSupport, you get a high Return on Investment (ROI) as well.
Oh, and you can outsource any service at a cost starting from $12 per hour!! Just fill out this form, and let us know all the details about your project!
Final Thoughts
Bottom line is this: nearshore outsourcing means partnering with an outsourcing company in a nearby country (on the same continent).
The major advantage? You avoid running into language barriers and cultural differences while dealing with the outsourced agents.
When it comes to nearshore outsourcing companies, the best choice is HiredSupport. Get in touch with us today, and get quality customer service support starting from just $12 per hour!
Frequently Asked Questions
1. How does nearshore outsourcing save costs?
If you partner with a nearshore outsourcing company instead of hiring an in-house team, you avoid expenses like recruitment, office space, equipment, technical support, and training
2. Should I choose nearshore outsourcing or offshore outsourcing?
The answer depends on what you require. If you want to save money and can overlook cultural differences, consider offshore outsourcing.
However, if you have a slightly higher budget, consider nearshore outsourcing for improved communication and faster response times.
3. Is Nearshore Outsourcing secure for my business data?
It depends on the outsourcing company you choose. With an outsourcing company like HiredSupport that follows standards like GDPR and implements security measures, you shouldn’t worry about your business data.
