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How to Earn the Most Benefits From Nearshore Outsourcing

Posted Feb 18, 2020 Offshore Team

Companies around the globe use nearshore outsourcing to cut costs and enhance their capabilities. 

Nearshore outsourcing means transferring business processes to a nearby country, especially in preference to a more distant one. 

Relative to offshoring, nearshore outsourcing to an outsourced team: 

  • Helps to ease communications
  • Increases transparency 
  • Lower the risk of execution issues

Use this article to learn how businesses can maximize the value of their nearshore outsourcing partnerships.

1. Prioritize Tasks to Outsource

Consider which tasks are causing slowdowns in your company. 

According to Clutch, companies most-often outsource tasks are technical, repetitive, or time-consuming: 

  • Accounting (37%)
  • IT services (37%) 
  • Digital marketing (34%)

Outsourcing tedious tasks can lead to sizable savings in time and resources that can be reinvested for growth. This also frees employees to focus on meaningful, high-value work.

Consider which nearshore countries offer skilled talent that matches your needs and your budget.

In terms of IT, below you can find the statistics showing a list of countries with the best software developers worldwide.

best software developers

SkillValue 2019 Report

Businesses in Europe look to Ukraine to access skilled developers.

Many outsourcing providers also have nearshore offices. This means you can inquire about the best offshoring companies, then inquire if these companies also offer nearshore solutions.

2. Consider Your Organizational Structure

A nearshore team should fit within your daily operations and your budget.

With a partner in a nearby timezone, it’s relatively easy to communicate and exchange deliverables. 

However, like any hire, you must evaluate whether it’s practical to add another entity to your team.

This is because someone in your organization will need to establish and maintain a reliable point of contact with the provider. This person must monitor the provider’s performance and ensure the agreed-upon tasks are executed adequately

Once you’ve decided what to outsource, evaluate whether these responsibilities are better suited to a nearshore or an offshore team.

Say you’re a U.S. company that’s looking to develop a software product. Should you hire developers from offshore Ukraine and nearshore to other eastern European?

In this scenario, your overseas teams can work while your office is closed, which can accelerate your project timeline without increasing costs. 

Evaluate which option is best-aligned with your employees, budget, and can be implemented successfully.

nearshore-software-development

Guide to Nearshore Software Development in Eastern Europe

Software development market statistics of the tech countries — Poland, Ukraine, Romania, Czech Republic, Hungary, Bulgaria, Belarus, and Croatia.

3. Ensure Success

Successful nearshore partnerships are based on clear communication, expectations, and follow-through.

An ideal partner should be responsive, reliable, and flexible enough to match and grow with the demands of their assigned role.

Ask a prospective candidate for references, then conduct your own research into the company’s reputation.

Use ratings and reviews, your network, and any other available resources to reach a decision. If a business contact recommends an offshoring company, inquire whether that provider also offers nearshore solutions.

It’s important for a provider to match your exact needs, so look for a company that’s performed well for companies similar to yours.

Choose an experienced nearshore partner that can handle your responsibilities without adding to your workload. 

Getting The Most From Your Nearshore Outsourcing Partnership

Nearshore Outsourcing allows businesses to access a low-cost pool of talent with greater operational feasibility than offshoring.

Outsourcing services are increasingly widespread, and the price and availability of talent vary by country. 

For best results, look for an outsourcing company with a history of helping businesses like yours to cut costs and streamline operations.

Grayson Kemper is a Content & Editorial Manager for Clutch, a B2B research, ratings, and reviews company in Washington, D.C.

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Juliya Mankovskaya

Juliya Mankovskaya is an avid Outreach Specialist at Daxx. She is passionate about Digital Marketing, IT and modern technologies. Juliya is responsible for Daxx social media promotion and external publications.

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