Business terms, concepts, and models change as the market changes, technology improves, and supply chains expand and contract.
It is easy to get lost in the jargon of it all, but do not shy away from the unknown – it could benefit your business more than you realize.
Onshoring, offshoring, and nearshoring might be new terms for you, and while there are complex ways to approach them, the idea behind them is simple. Global e-commerce success is not the only thing to have come out of tech improvements in the past decade.
If nearshoring is a new term, you have come to the right place. This article unpacks this business practice in more detail.
Offshoring involves outsourcing to distant countries, onshoring outsources to smaller cities within the same country, and nearshoring is a subset of offshoring but involves outsourcing to nearby countries instead of different ones.
Simplicity
Pretty simple, right?
All three have their own set of challenges and mitigating benefits. Nearshoring is an attractive outsourcing methodology for achieving cost efficiencies and strategic business goals..
Ryder nearshoring solutions combine the benefits of offshore and onshore outsourcing by providing similar time zones, cultures, languages, and proximity, but at a more affordable cost.
That means logistical perks and less expensive labor. Considering labor costs account for a massive chunk of most budgets, cutting back where possible can ease that financial burden.
Talent Acquisition
Nearshore outsourcing allows companies to tap into a global talent pool of impressively skilled employees. Outsourcing to faraway countries might offer a cheaper labor pool, but it comes with a set of challenges that not many businesses have the time or expertise to navigate – such as language barriers and extreme time zone differences.
The list of countries offering highly skilled labor at a fraction of the onshore cost is growing rapidly. If you need to overcome the challenges of a demanding market, cut costs, and deliver a seamless customer experience, you should consider nearshoring.
The bottom-line benefits of nearshoring speak for themselves over time.
Some aspects to consider when implementing this outsourcing methodology include hiring the right people for each job. There are many overqualified people in nearby countries, but that does not automatically mean you should hire them.
Talent Rention
Fair labor rates are essential, but so are offering challenging environments for employees to grow. After all, if you want a robot to do the job, then buy one.
To retain a motivated and high-performance team, strike a balance between each project and each consultant’s skill set.
Start by dipping your toe into the nearshoring waters and form a core team. You can always scale up later if all goes according to plan. Invest time and energy into getting the perfect team and introducing them to the team back home.
It is crucial to educate the new consultants about your company values so they absorb the company’s culture and brand identity. The last thing you want is an obvious overseas hire for cheaper labor rates.
Final Notes
Lastly, ensure that you have the right infrastructure in place and tasks ready and waiting for them so they can hit the ground running.
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