The Difference between Offshore and Nearshore. Which is Right for You?
Is your company searching for the right Business Process Outsourcing (BPO) partner? When searching for the right talent and right outsourcing company, you will encounter two core options—offshore and nearshore. Depending on your needs, one type of BPO company might be a better match for you than another.
Offshoring is typically used to refer to workers that are in more distant countries (from the United States) including India, China or Ukraine. These countries are generally over 4 time zones away. The cost of working with offshore companies is typically slightly lower, but there can be more difficulties than you might think. When you work with a team on the other side of the world, it makes real-time communication difficult, since your team will be in the office when you’re in bed. However, if you like to go to sleep and wake up to completed assignments in your inbox, it might be a better option.
Nearshoring is the same as offshoring and other types of outsourcing, except it takes place closer to the United States. These companies work in similar time zones so that the other business will be open at the same time that yours is. If you are in the United States, you can expect nearshore outsourcing companies to operate in Mexico and South American countries like Argentina, El Salvador and Uruguay. Real-time communication is simpler, and you can place a phone call and get an answer right away. Nearshoring also allows you to potentially visit with your outsourced team in person more regularly and without the need for extensive travel. Nearshore companies might be slightly more expensive, but the convenience of working with someone closer to home often outweighs the cost.
Which Is Right for You?
You should not make your choice lightly! Instead, consider the following:
- Do you want to collaborate with your outsourcing company? Being in opposite time zones might make that difficult.
- How important is it that you can visit your outsourcing company in person for meetings and reviews?
- How long can you wait for tasks to be completed? Offshore companies typically take longer to respond to requests and turn work around.
Choose the Right Outsourcing Partner
Outsourcing Services International is dedicated to helping businesses like yours grow and thrive in a competitive, changing marketplace.
Subscribe to our Newsletter!
Receive our latest outsourcing case studies, and business articles.