Nearshoring is a business outsourcing approach where various business processes, such as software development, customer service, or manufacturing, are shifted to locations that are in close proximity to the contracting company's home country. In contrast to offshoring, which involves outsourcing to geographically distant nations, nearshoring capitalizes on the advantages of being close both geographically and culturally.
This strategy has gained popularity due to several key factors. One of the primary drivers is the imperative to trim operating expenses, as nearshoring often offers access to skilled labor and resources at more competitive rates compared to the contracting company's home country. Furthermore, geographic closeness facilitates real-time collaboration, diminishes communication challenges, and minimizes the complexities arising from differing time zones.
Nearshoring also distinguishes itself by enabling companies to uphold a heightened degree of quality and oversight over their outsourced processes, as they can keep a closer watch on operations. Additionally, this approach aids companies in meeting industry-specific regulations and standards, which can be more challenging to achieve when outsourcing to more remote locations.
The choice of nearshoring destinations varies according to the specific needs of each company and industry. For instance, technology firms in the United States may find Mexico and Central America to be ideal nearshoring options. In Europe, Eastern European countries are frequently regarded as viable nearshoring choices for Western companies.
The Sales Glossary is a compendium of all the most commonly used terminology in sales strategy. Many of the concepts listed here are used when implementing a CRM system or a digital sales funnel, no matter if they are legacy systems or an online CRM. See also our blog that deals with sales techniques, marketing and sales culture.