Introduction
In a scenario where high-quality talent is scarce and hard to find, nearshore software outsourcing has become a popular alternative for businesses worldwide. This is especially true for countries like the United States and Canada that choose to work with Latin American tech companies as their preferred allies.
In 2020, a report from Statista states that in the US alone, the market size of the outsourcing industry is worth $132.9 billion, and this is expected to grow by 1.6% this year. This can help you visualize the importance of this industry, and it does not come as a surprise as nearshore outsourcing partners provide expertise, top quality results and increase productivity and efficiency at reduced costs.
What is Nearshore Outsourcing?
Nearshore outsourcing is a business model where a company outsources its business processes, services or tasks to a third-party service provider located in a nearby country or region. This is different from offshore outsourcing, where the service provider is located in a geographically distant location.
Nearshore outsourcing offers several advantages over offshore outsourcing. For one, the proximity of the service provider allows for easier communication and collaboration between the two parties. This can help ensure that projects are completed on time and on budget, with fewer misunderstandings and delays.
Additionally, nearshore outsourcing can offer cost savings compared to onshore outsourcing, while still providing quality services. Labor costs and overhead expenses are often lower in nearby countries or regions, making nearshore outsourcing an attractive option for companies looking to save money without sacrificing quality.
Some common examples of nearshore outsourcing include companies based in the United States outsourcing services to providers in Mexico or Canada, or companies in Europe outsourcing services to providers in Eastern Europe.
In this whitepaper, we will go through the most important considerations for nearshore outsourcing and help you understand why you should start working with a trusted partner to boost your company’s technology transformation today.
