Benefits and Drawbacks of Nearshore Outsourcing

Do you know what nearshore outsourcing is? It is an outsourcing technique in which a business or government outsources the IT contractors from another country in the near time zone (near shore) for meeting its IT needs. This terminology was used or defined in the year 1997 by Softtek when they started working with the very first US clients. The location that is near to your country from where you outsource employees is your near shore.

Today, plenty of companies are found outsourcing employees from their neighboring countries in order to get the right expertise and to make them work at lower wages. Many of the large companies have found it to be the best alternative for recruiting competent people at less prices. It is better for them to hire such people instead of hiring people from their own country to whom they will have to pay a lot. Nearshore development outsourcing has become a lot popular in the previous decade.

How is Nearshore outsourcing beneficial? One benefit is that you get a chance to hire employees at less wages or salaries but is it the only benefit of this type of outsourcing? Well, there are plenty of benefits more. The very first advantage is that there won’t be issue of the time zone which will make the online interaction easy. Whenever you need the employees, they will be there to respond. This will reduce stress. Work will be done at the time required and there will be better coordination between both the employer and the employee. This means the Nearshore Staff Augmentation will be strong.

As the company from where you would be outsourcing people will be your neighboring country, it will be easy to arrange travel trips and visit them whenever desired. There won’t be any huge expenses involved. Your culture would also be more or less similar which will make communication easy. Cultural diversity will be less.

When it comes to traveling, visa has always been the issue. Great news is that this type of outsourcing does not need visa for traveling. You would only need a passport and your ticket to visit your outsourced company.

Though Nearshore is beneficial for both the companies but one drawback is that the home country will not have many jobs left for the local fresh graduates. Other than this, the pay scale will become low as there won’t be any kind of foreign competition. The next drawback is that the Copyright and Patent Violation concerns of the neighboring country might always interrupt your work. Similarly, issues about the confidentiality of info may arise as one company from a different country would be sharing its information with another company in another country.

Source by Billy M Harris

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