Nearshoring: 5 reasons to consider it

August 04, 2021

Reasons why you should consider nearshoring

You may be familiar with nearshoring if you know that you need to hire people to fill in the available job positions. For those who have never done any recruitment before, this term may be new to them.

Nearshoring means you are going to search for employees who are nearer your location geographically. Some companies are into offshoring, which means that they are willing to hire more than 9 hours away from their usual time zone. Looking for a nearshoring provider can help you find the right employees to hire.

Why do companies try out nearshoring?

There are a lot of companies right now that would like to reduce their operating costs. They would get nearshoring services from trusted companies. Through this, it will be easier to find some remote employees. They can expect that employees are going to give the following:

  • Lower hourly rates
  • Skills and knowledge
  • Passion for the tasks that they have to do.

Some people might say that if you want to reduce the money you are going to spend, offshoring can be the better option. Some problems may occur because of this.

Offshoring problems that can be solved if you choose nearshoring

The rates are going to be lower when you hire offshore employees. Yet, you need to be familiar with some of the disadvantages so that you can decide if you should still push through with it. There may still be some details that you cannot overlook. For instance, you need to be familiar with European nearshoring specifics when you want to hire from that continent.

Timezone issues

Since offshore employees are in entirely different time zones, setting up meetings to sync with other employees can be challenging.

Lower skill levels

While the rates are expected to be low, you cannot expect that the skills will be the same as the employees’ skills that you can hire from your own country.

Language barrier

Some offshore employees can have the right skills, but they will not communicate properly. They may not be able to speak in your first language, and this can become a problem. It will be harder if they do not understand your native language that well.

You would like to have a quicker turnaround time, and the only way to do this is by doing nearshore software development over offshoring.

5 benefits of nearshoring 

Nearshoring in Europe is considered to be a hot topic right now. Companies are trying to reduce their costs but would still like to have skilled people working for them. These are some of the benefits that you can expect to get:

Reduce cultural discrepancies

There may be times when it will be hard to understand the culture of your employees. They live in different places, so you also need to adjust to their needs. IT nearshoring will help reduce this as the culture may be more or less similar to farther countries.

Greater speed when producing output

One of the hardest things to do is gain the different employees’ needed data. For example, one employee may need data from another employee who is from a different country. Instead of being able to do the work immediately, everyone would need to wait.

With employees who just live nearby, the time differences will not be too noticeable. Data can be received immediately, so the output can also be given faster.

Customs and duty charges can also be reduced

There may be instances when you need to send some packages or items to your employees. Instead of paying a lot of money because of the distance, this will be greatly reduced.

This is also the same for wire transfers and payments. The farther the person is, the harder it may be to send payment. The fees may be greater too.

In-person meetups can be possible

There will be times when employees just need to meet up with each other. There may be matters that can be easier to solve when they are together. Sometimes, they just need to hang out and get to know each other better. They know that they will be able to work well that way. No matter what the reason is, scheduling meetups can be easier and will be possible.

The company culture can be understood better

There are times when people cannot work well together because they do not understand each other. Their cultures may just be too different that they will have to tend to clash all the time. You have a business model in mind, and you need to have the right employees who will understand how you would like to achieve your goals.

What to expect from nearshoring

  • Expect that the costs are going to be higher. Just remember that nearshoring will have a higher chance of ROI as compared to offshoring. The amount that you are going to spend will come back higher. Nearshoring can be an advantage if you would like to hire people who need to collaborate often. If you know that minimal collaboration is needed, offshoring will not be a bad idea.
  • You would need to partner with a company that can offer strong nearshoring candidates. Some companies may have employees who will break down easily when they do not know how to do tasks appropriately. So, when you make a hiring mistake you want to look for resilience and will be able to power through even with the greatest setbacks.
  • It will also be wise to consider confidentiality and data protection. IP, theft, and security will always be issues you will go through when you do nearshore. You need to look for a company that you can trust with some of your important data. The right software development company will protect your data. They will make sure that everything is secure.

Conclusion

You need the right company that will provide nearshoring services that will work for your company’s current needs. Get to know your business model by heart so that this is something that you can correctly decide on.

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