Is nearshoring really that good?
Is nearshoring really that good?
Here to play nearshoring advocate to introduce you this type of service all over again and show you its good sides.
From this article you can expect answers to such questions as:
- What is IT nearshoring?
- What are the benefits of nearshoring?
- When is it worth to invest in nearshoring?
- How does nearshoring work in Poland?
Let’s get started and see if the answers feed your curiosity, let you see nearshoring from the other perspective, deliver what you expected or maybe surprise you. There’re so many options.
What is IT nearshoring?
Technology development is the fastest growing industry on the market, which allows people to make professional progress and attractive income. But what happens when you need great specialists but your whole team is already busy with other project, you can’t let yourself hire new employees and looking for the available skilled specialists on the nearest market might take too long.
The clock is ticking, your business partner or clients need clear information, but you’re stuck there. With nearshoring you can say goodbye to these issues all by one. Check on the market around you where barriers such as language, culture, work ethic and many more blur because at some points they might be similar.
There you can find great experts from your region that are willing to cooperate with employers from abroad. This is always a new type of challenge but also an opportunity to experience different approach and solutions, learn one from another. Besides, it’s always nice to have in a CV some projects that succeed outside of the country you’re working in.
However, not everyone knows what nearshore is. Do you know how this practice can improve the situation in a company when the local market cannot provide the specialists that are needed to meet customers wishes and expectations? Nowadays, there’s a tendency of growing demand that is not able to being covered with supply of qualified staff. So, you can call nearshoring to the rescue.
Nearshoring, by definition, means transferring business processes to companies that are in nearby countries. The advantage of relocating to neighbouring countries is no overlapping time zones and a similar culture from the same region.
It makes difference in communication between the team thanks to the same language or good language skills, also online meetings will be held at similar time. It is also about reducing costs and improving the quality of services.
The companies that value contact with their staff in real time chooses nearshoring very often. On top of that there’s the possibility of visiting the company’s office is more likely to happen, because the flight will be short or it’s even more convenient to choose a car.
However, to understand it better, let’s see the difference between offshoring. The second practice is the most cost-effective option that involves relocating your business to another country where geographic location doesn’t matter so simply, you’re going worldwide. But when a company truly cares about instant contact on time with their business partner, they might find few difficulties. Due to the time difference, synchronous communication in the team may slow down the development of services.
Therefore, nearshoring fits better to the projects that require top tier communication, where cooperation in a team is set for a long time, not only to one task or a project. While offshoring is better for volume-based tasks, where communication is also a valid point of the cooperation but it’s not as frequent as in nearshoring.
What are the benefits of nearshoring?
Reducing the costs of an it project
Nearshoring allows to reduce expenses depending on the country in which you are looking for specialists. Because of that, it’s possible to save money for other tasks or whatever your company may need more right now. The cost reduction is also achieved through geographic proximity, in the other words you can choose cheap travel by low-cost airlines for your business car or drive your own car if you leave near the country borders.
Expanding the development of talen in the company
There is a shortage of qualified programmers with specific skills on the local market. Looking for a new employee becomes problematic as they are difficult to track. Therefore, the level of competitiveness is growing between companies through the demand for specialists, and thus unnecessary expenses increase. At this point, you can broaden your horizons using nearshoring, which will provide you with a qualified team of specialists. This method gives many opportunities to recruit talents and avoid time differences.
The innovative side of nearshoring
When your project stay still you need to react quickly. Firstly, you should try to look at the issue and find the obstacle and study it before it is too late. No one else than experienced and skilled specialists may get rid of the problem. The staff result in increased on productivity and problem-solving rate. Their own qualities are the effective teamwork and on time delivery which are vital for each project.
Time zone compatibility
If you don’t want to work at night, have a broken 24-hour day but you’re ready to work with good specialists from other countries, nearshoring is the perfect solution. Same time zones allow teams to work in similar hours, so the instant communication goes smoothly. Thanks to this option, you avoid delays that could arise if employees were from different side of the world. This structure has also an influence on the way how business trips look like. There’s no time for long flights, so in return we earn it to use it depending on your priorates.
Besides communication, the cultural background play major role in a cooperation between companied from different countries. The way of thinking and the common language between the team can make the difference. You can save yourself from doing mistakes in that from your point of view weren’t hurtful but for your business partner they could be. It’s about certain behaviours, symbols and more non-verbal language that is often based on our roots and the place we come from. However, when it comes to verbal language, fluent English-speaking professionals are always seen with open arms.
Quality of infrastructure
Great infrastructure is a huge advantage of nearshoring. Choosing a partner in a country with a reliable infrastructure will ensure that your project is not blocked from some accidental events.
Trouble free integration
During relocating operations to another country, mutual knowledge of cultures and languages assist integration into an internal team. The respect that comes from working with colleagues on the team with similar skills and state of technical knowledge increases the pace of work. The subcontractor can quickly deliver the best performance when not only have been integrated with business processes but also felt comfortable in the new environment.
Nearshoring is an appropriate legal option as the countries in the vicinity will be aware of the prevailing laws in that country. Therefore, nearshoring allows to have a lot of control. Because of that it’s possible to avoid getting into the desired legal trouble.
Disadvantages of nearshoring
From the other hand, when it comes to the disadvantages of nearshoring, it’s worth to mention that the risk is not related to the business model itself but applies to poor planning.
The main disadvantage is the cost itself, because it is higher than offshoring, but the price is related to numerous facilities. There can always occur some problems due to language barrier, so it’s better to be prepared just in case. It is known that when a team works locally, it will be easier for them to communicate than when the company works with employees from another country. This is not a big problem in today’s world when online meetings can be held whenever you want.
Especially now, that the pandemic world has forced us to improve online communication solutions. Nearshoring is also about focusing on specialist from the closest are. Because of that, you face a limited number of experts.
When is it worth to invest in nearshoring?
The nearshoring service is used by various IT companies that need talented people but when it’s worth using this service, you will find out by reading the under mentioned sub point:
When you want to:
- Reduce the costs of an IT project, so the closer based business partner, the cheaper trips when you need to meet in person.
- Gain new talents in your company. You need special competences and time to find those who you can recruit, nearshoring will give you quick access to such specialists.
- Use an innovative approach to a problem, you can quickly prevent eventual complications.
- Create a space for you to develop the best solutions and ensures strategic efficiency thanks to technology.
How does nearshoring work in Poland?
Polish programmers are seen as valuable part of the outsourcing industry. Our specialists are among the best in the world, our country ranks 12th among the best outsourcing nations, but the knowledge and skills of local specialists features internationally.
One of the advantages of Polish outsourcing is that we have quite low costs comparing to bigger countries in Europe that operate in euro. An important aspect is also the knowledge of the English language that Polish specialists use very well. The future looks good for us too, because the number of specialists is growing very quickly. Geographically, Poland is in the very centre of Europe, so flights from other countries will not take forever.
Let’s wrap it all up! Nearshoring can bring a lot of beneficial services to the company. With all these opportunities and advantages that clearly outweigh the disadvantages is quickly becoming the most popular outsourcing model.
If you want to meet your business partner as much it’s possible, don’t want to give up on talented people that might wait from you abroad but also value team communication, nearshoring is for you. This service is the best choice to start a journey with outsourcing. Later, you can scale it to your needs and resources.