HR GENIUS BLOG
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During the last few years the outsourcing industry suffered at an international level – the global political, economical, social and security changes are to blame. Nearshoring also referred as Nearshore Outsourcing is on the rise.
The biggest challenge in outsourcing governance has shifted towards downstream risk mitigation by choosing the best location for processes. The outsourcing world became fully aware of potential safety risks that offshoring brought upon themselves.
The cost savings gap between India and other popular locations such as Central Europe and Latin America decreased to less than ten percent. Central and Easter Europe are also viewed as a safer location site to host your BPO and ITO services. The close proximity to the main facilities had made it possible for a shift in delivery preferences towards nearshore and sameshore options alike.
Having call centers nearshore and sameshore will become a major trend in the upcoming years.
The Growing Trend
The shift in delivery opens up new possibilities for all the counties gathered around the so called nearshore umbrella. The number of nearshore sites themselves have grown significantly.Managers need to be aware, everyone is gunning for that nearshore multibillion dollar pie – you’re bound to encounter some really “exotic” places thanks to advertisement and marketing. Proven nearshoring locations include Canada, Latin America, Central and Eastern Europe and .
The nearshore Zone
But what defines a nearshore location? There are two rules mostly used in the outsourcing industry. The first one is that you don’t need to cross the ocean to get your nearshore site. The second one is quite similar, up to 5 hours of flight.
We believe that nearshoring locations should be aligned along a spectrum of potential outsourcing sites. On one end of that spectrum are locations such as China and India, on the other Poland and other Central European countries that specialize in BPO and ITO services.
Geo-location should never be the determining factor when looking for a potential nearshore location. Linguistic and cultural ties are also a key factor, even education similarities and directness of communication can be a deal-breaker.
Take the above factors into consideration before you choose a nearshore location or a partner since they tend to play a far more important role than they are gived credit for.