I get this question often: What is the difference between offshore and nearshore, when we talk about outsourcing digital services? Is there one that is closer than the other? In a word, yes, but the impact of that proximity can be significant in a multitude of challenges, especially at a time when industry growth has accelerated rapidly.
In many sectors, and quite recognized in the technology industry, the remote work strategy is being implemented by moving resources abroad, allowing companies to save on administrative expenses and labor costs, while obtaining more quality in deliverables and efficiency improvements.
In that sense, both offshoring and nearshoring represent ways of outsourcing business operations to a different region or country. However, there are differences.
While offshoring is an approach in which a company transfers all or some of its activities to another country, nearshoring seeks that organizations work with teams in countries located closer to their own, offering a greater affinity and cultural alignment between the collaborators.
This, in turn, brings high-impact benefits such as speed to market and the ability to execute agile projects without lag times due to time differences.
Faced with an unprecedented situation like the one we are experiencing, agility and speed in the development of projects are essential. Nearshoring has become a beneficial model for both the US tech giants and Latin American hubs (click here).
The costs of specialists in IT issues and digital services in the United States are very high, which is an additional advantage for the development of products made in the Latin region, as well as the possibility of making Latin American talents even more visible. Latin American service outsourcing companies, then, have a huge potential to continue positioning themselves as benchmarks in the sector.
It's no secret that the cost of developers and IT specialists in the US is at an all-time high and only increasing, making onshoring too expensive. IT products and services from Latin America are lower in cost but have the same (or even better) quality, reliability and efficiency of any workforce on the planet. In addition, nearshoring in Latin America not only reduces costs but also ensures the employment of a high-quality workforce.
Also, face-to-face meetings (when necessary) are easier, as the countries are closer, therefore they are faster and cheaper. Airlines have several direct flights and weekly routes, accommodations are comfortable and affordable, and internet access in major cities is as reliable as anywhere else on the planet.
On the other hand, the cultural relationship that exists between the countries of the Americas is an undeniable advantage when it comes to nearshoring. Companies can work with teams in countries located closer to their own, which not only offers benefits in reducing costs, but also means greater cultural alignment, greater compatibility and better understanding between the parties involved.
Nearshoring also removes the language and time zone barriers that often come with outsourcing to far countries like India or China, for example. Major cities in Latin America have bilingual human talent. Regarding the time zone, Colombia overlaps with most of the Central and North American time zones, which is very convenient for North American clients.
It should be noted that the region´s talents in matters of design, engineering, creativity, and programming is indisputable. Likewise, the quality and reliability when carrying out projects with a strategic vision have allowed the subcontinent to have differentiators that go beyond the obvious, putting digital production companies at the forefront and at the top of their options when time to consider a third-party vendor.
It is out of question that the region is a natural partner of the North American country. The region has a booming technology industry and is home to great talents that continue to develop, who have a high command of English, standing out on a global scale. In turn, countries such as Colombia or Mexico already have professionals being trained in these skills, and companies offer constant training on trends and processes.
On the other hand, the proliferation of businesses continues to increase and the credibility of Latino companies is increasingly high. Its passion and dedication to its work is evident and recognized by companies from other countries, which is why the region becomes increasingly attractive in the international market.
All this thanks to a remote work model that, under unexpected circumstances, has been strengthened and will be the future of work for millions of people who are part of the world's technology industry.