With the entire planet gone digital, it makes sense that we understand the best ways to get the job done. Nearshore outsourcing is among the best outcomes of modern digital transformation, and it brings plenty of benefits to the table. Instead of hiring a team to come to the office, the process of nearshore outsourcing relies on hiring a digital team geographically close to the company.
This allows companies to enjoy several benefits, such as reduced cost, minimal logistics, and proximity. Therefore, the culture of nearshore outsourcing strategies is on the rise, and more and more companies are trying to scale up their processes by investing in this strategy. It helps them increase profits without outsourcing their projects overseas.
What Is Nearshore Outsourcing?
Nearshore outsourcing is the process of outsourcing different projects to digital teams within the proximity of the company. Instead of outsourcing the projects to other countries that are thousands of miles away from the company, the management outsources the project to a local digital team.
It allows the company to have more control over development costs and operational expenses without sacrificing the quality of the development process. There are several benefits of the nearshore outsourcing strategy that are currently driving the need for this process. Let’s explore these benefits and see how they can help your company.
Familiar Interface in Nearshore
Due to the cultural proximity of local digital teams, one of the biggest benefits of nearshore outsourcing strategy is that the outcome shows a native interface. This means that the final product will have an interface that is most suitable for the locals due to the involvement of a local digital team.
In addition to a native interface, the management can also enjoy transparent communication at all times. This strategy also allows them to enjoy complete visibility of the ongoing development process without language or cultural barriers. Once the project is finished, the interface offers more cultural authenticity than offshore outsourcing.
When companies outsource their projects to offshore countries, they also have to put up with different time zones. This is why the management staff will often have to wake up at odd hours to get details and updates on the project. However, with the help of a nearshore outsourcing strategy, companies can easily eliminate the time zone issue.
Similar Time Zone
The local digital team will be close to the company. The management will not have to worry about different time zones. The maximum differences can go up to one hour, and the management can get updates during work hours. It eliminates the stress and allows the management to be more productive when monitoring the project continuously.
When companies opt for nearshore outsourcing, the partners are almost always located in the same or the nearest time zone. This allows the maximum difference of up to one hour in either direction. With a minimal difference in time zones, the company can maintain a better form of communication with the locally hired team.
The managers can continuously stay in touch with the local team and get continuous updates throughout the official working hours. The minimum difference in the time zones also allows the managers to enjoy a 7-hour window for crystal clear communication on the project.
Local Market Knowledge
Another important benefit of the nearshore outsourcing strategy is the local market knowledge of the digital team. Sometimes, offshore teams do not possess the right market knowledge and cultural sensitivity to produce the desired outcome for the company. This is why the management has to work closely with the team to ensure that they are on the right path and are in possession of the right market knowledge.
When companies outsource their projects to local teams, they do not have to worry about market knowledge. The local teams are already aware of the right market knowledge, and they can use it to their benefit when drafting and executing masterful strategies for the development process.
Geographic Proximity
Another important benefit of the nearshore outsourcing strategy is the geographic proximity to the company. This allows the management team to drive up to the local team and see the project development process in face-to-face meetings. Therefore, the management can easily meet up with the local digital team once a week or a month to get updates about the project and have useful meetings about the development process.
It also allows the management to maintain a better form of communication with the development team. This physical communication can actually translate into better results for the company and speed up the development process.
Some projects require physical meetings throughout their development life cycle. This is why companies often send their best managers to offshore countries to make sure that the development team is on the right path. Offshore outsourcing can turn physical meetings into costly trips to other countries. This is why companies often send one or two high-level managers to different countries to make sure that the development process is on the right path.
However, with the help of nearshore outsourcing, the company can send as many managers as required to the local team. It will allow the company to save hundreds or even thousands of dollars in airline tickets and hotel stays. The managers can easily drive up to the local development team and come back after a few hours in company vehicles.
Cultural Similarities in Nearshore
Another major benefit of nearshore outsourcing is the cultural and lingual similarities between the original company and the hired team. Sometimes, one of the biggest issues of outsourcing is the language or cultural barriers. Teams in other countries may not always understand the local language as desired.
In addition to this, the cultural differences between the two locations can also result in unwanted outcomes. This is why nearshore outsourcing aims to minimize these differences by offering maximum cultural and language similarities between the management and the digital team.
The most likely scenario is that the team will also speak the same language as the managers. Therefore, the involved parties will not have to rely on a third language, such as English, to communicate their thoughts. They can easily talk in their native language and achieve better efficiency and communication than before. Moreover, the cultural similarities will also allow the team and the management to be on the same page at all times.
Why Should You Choose Nearshore Outsourcing?
The world is currently going through the largest digital transformation process in the history of humankind. It makes sense for companies to get aboard this transformation process and enjoy reduced costs with the help of modern digital technologies. One of the biggest benefits of this digital transformation is the availability and popularity of nearshore outsourcing strategies.
Nearshoring will allow your company to handle more projects than before and easily delegate complex projects to local teams for better results. Similarly, this strategy also allows companies to enjoy more control over the operational expenses and miscellaneous expenditures of the projects without losing touch.
AppSpring can help you find the best digital teams for your next project, or we can help you develop your next big project right away. We can offer top-notch web and application development services without spiking up your costs. Our dedicated team is always ready to assist companies with their outsourcing projects. Contact us now.