Nearshoring is one of the ways to outsource services in a company, similar to offshoring. Specifically, it is known as nearshoring the process of outsourcing the work activity of a company through subcontracting with other companies.
Furthermore, nearshoring implies that such subcontracting takes place in a relatively close country, this being one of the main differences that we find between nearshoring and offshoring.
Nearshoring is therefore based on the outsourcing of a part of the processes related to the company's work activity, in a nearby or neighboring country, seeking to bring the production processes of a company closer to its market.
Nearshoring has been shown to improve the quality of service compared to offshoring outsourcing models, since the nearshoring model takes advantage of outsourcing on the one hand, and proximity to work centers on the other.
Features of nearshoring outsourcing
Outsourcing according to nearshoring is based on a series of characteristics, which in turn represent the benefits obtained with this outsourcing model.
Lower cost in transportation
The selection of neighboring or border countries to outsource part of the production process implies a greater proximity to the distribution centers. It involves a reduction in transportation costs compared to other forms of outsourcing.
Greater control of the outsourced process
The proximity also allows greater control of outsourced processes, also assuming an improvement in the quality of production or service.
Similar labor and cultural characteristics
Although it may not seem important, it is one of the biggest problems caused by models of outsourcing traditional. Sharing the same language or time slot facilitates interaction between departments. In addition, sharing similar labor regulations also facilitates the implementation of nearshoring.