Outsourcing has gotten really popular in the past couple of years. Many European companies are doing for a lot of reasons, which we will get into later on. Offshoring is the practice of outsourcing to regions that are farther away, most of the time in Asian countries. Onshoring is the practice of outsourcing to closer regions, usually within the same country. Nearshoring, however, is a compromise between the two. It's on of the best ways to reach your goals. Let's talk about some of the reasons you might want to outsource and the advantages and disadvantage of the different types.
Reference: http://nearshoring.pen.io/
The main reason for outsourcing is to minimize the cost of operations and save money. A branch that was previously internal turns into a client that is oriented by contract. This allows for a lot more flexibility and the providers of the service can easily be changed if you aren't satisfied with it. The cost of the service is usually a lot cheaper than it would be in your own country. Plus, usually, when there is a certain task involved there is a shortage of specialists that can perform it. But, outsourcing fixes these problems.
When debating whether you should choose offshoring, onshoring or nearshoring, the best option for saving money is outsourcing to countries that are far away. But, that is usually a problem than a solution. The IT services are cheap, but there are different work ethics, time zones and language barriers that need to be considered. For example, in India, it is impolite to decline an offer. This might lead to the IT company accepting a job that is too big for them. This can cause a lot of problems for your firm, as you might fall behind on important tasks.
With nearshoring in Europe, the cultural and work ethic differences are only minimal. They won't impact you in the same way as offshoring. There are locations where you can outsource for a lower price, although it won't be the same as India or China, it's better than taking such a risk. Online meetings can easily be arranged and if something bigger is planned, a face-to-face meeting can also be performed without any problems. The time zone differences are a lot smaller, only plus one hour or minus one. Most of the time, you will find nearshoring companies in the same time zone. This is great, as you'll know what is going on at the moment. You won't have to wait one day in order to find out how the job is going.
When debating whether you should choose offshoring, onshoring or nearshoring, the best option for saving money is outsourcing to countries that are far away. But, that is usually a problem than a solution. The IT services are cheap, but there are different work ethics, time zones and language barriers that need to be considered. For example, in India, it is impolite to decline an offer. This might lead to the IT company accepting a job that is too big for them. This can cause a lot of problems for your firm, as you might fall behind on important tasks.
With nearshoring in Europe, the cultural and work ethic differences are only minimal. They won't impact you in the same way as offshoring. There are locations where you can outsource for a lower price, although it won't be the same as India or China, it's better than taking such a risk. Online meetings can easily be arranged and if something bigger is planned, a face-to-face meeting can also be performed without any problems. The time zone differences are a lot smaller, only plus one hour or minus one. Most of the time, you will find nearshoring companies in the same time zone. This is great, as you'll know what is going on at the moment. You won't have to wait one day in order to find out how the job is going.
