If you haven’t heard, nearshoring is replacing offshoring – and this is good for you, as a company. The new movement offers to bridge the gap between the high price tags and the oversupply of IT job openings in the United States (which topped 2.5 million in 2015). Problems associated with the traditional routes of outsourcing, like communication and quality control, take some of the pressure off the competition between US companies.
If you have dabbled in offshoring and were not impressed, here are some reasons you should consider giving this other method of outsourcing a try:
Profitability: Understandably, this is often the first incentive for companies to look outward for employment. Software developers outside of the United States cost as little as half as those inside the US. Depending on the volume of hiring you are looking to do, this can reduce both the direct and associatedcosts of your operation substantially. Even after salary and benefits, office space, business equipment, human resource administration, training, onboarding, licensing, and more can really stack up as your business starts to grow. Instead, keep your clientele base inside the US and shift your employee profile outside. You will see a dramatic change in your profit.
Capture and enable innovation: While it is true that outsourcing offers its patrons an opportunity to reduce costs, the qualified companies are also using it as a tool to ‘increase top-line growth by driving innovation into the business itself.’ In other words, companies that embrace this practice benefit by bringing in outside experience and expertise, giving themselves a comparative advantage in the market.
Contractors can become a valuable part of the team:
In line with our above point - this is an aspect of outsourcing that can make the difference between having an unorganized project and having a cohesive, effective one. So, nearshoring makes all the difference in the world on this front. Having contractors and or employees in the same time zone, sharing the same language (or two), and connectivity of the business culture makes your outsourcing experience more enjoyable and functional.
You can find a pool of qualified developers that aren’t set on working at top firms in Silicon Valley: Just because you can’t compete with Google and Apple in compensation for your employees or reputation as a world-renown brand, doesn’t mean that you need to settle on the skill set level when hiring employees or contractors. There is a whole talent pool that awaits you from outside of the west coast and New York, that is just as qualified, and half the price. Engaging in competition only makes sense if your company sees some benefits from competing. However, the truth is it makes more sense to get out ahead of the game. Send scouts to somewhere less impacted – be the first on a new scene.
The new movement toward nearshoring can not only help your company through these times of extreme competition but, if embraced in the right ways can give you a competitive advantage in the marketplace. Be the first to move to the unexploited places that are right near the American shore. Hiring from nearshore locations will help your company respond to market changes and move quickly in new directions. Capture the best talent now - in a flexible, affordable way, so that you can retain it as competition increases.