Companies in the United States have often outsourced the likes of customer service and software development to offshore or onshore partners in the past. However, each of these options has drawbacks, with onshoring becoming prohibitively expensive while cultural, language and time zone differences make offshoring hazardous at best.
These drawbacks inherent in onshore and offshore outsourcing could be described as the driving forces behind the rise of nearshore outsourcing. Nearshoring offers an outsourcing option at a better price than onshore companies charge, while also having similar work culture and time zones, as well as often being fluent in the English language.
What also helps is that nearshore locations like Costa Rica have become hubs of technological expertise, meaning there is a huge pool of talent for American companies to call upon.
Let’s look closer at some of the reasons why the demand for nearshore outsourcing is on the rise.
Less Expensive Than Onshore Outsourcing
Onshoring means partnering with an US-based outsourcing firm, but the market here is very competitive while US labor costs keep rising – often making it too expensive for many businesses working on a tight budget. Nearshore companies are significantly more cost effective, and yet offer the same level of expertise available in the United States.
Overlapping Time Zones With Nearshore Outsourcing
A huge nearshore advantage over offshoring is the similar time zones at play. A nearshore partner working in Costa Rica will share many of the same working hours as their US-based partners, meaning both parties can communicate in real time without the delays that frequently occur with offshore partners.
Nearshore companies share a similar work ethic and culture with Americans as well as many being fluent in English, especially those working in the technology and tourism sectors. They are open and straight-talking, which makes it easy to communicate ideas and explain any issues, ensuring everyone is always on the same page. This is simply not the case with offshoring, where significant cultural differences can lead to miscommunication and misunderstandings.
Knowing you can communicate with your nearshore partners the same way you would with an American partner is a welcome relief for anyone who has ever worked with an offshore partner.
Nearshore Outsourcing Offers Top Quality Talent
Costa Rica has experienced a huge amount of investment into its technology sector for many years now, resulting in a large pool of talented designers and developers. Nearshore companies here do not run short of talent and will have everything their American partners need for all software development tasks.
This means even small US-based companies with just a few staff, or even a single entrepreneur running everything themselves, can access all the skills and expertise they need to grow their company.
To find out more about nearshore outsourcing and how your business could benefit from adopting this approach, please speak with our team at +1 800 9747219 ext. 202.
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