Nearshoring or offshoring – which outsourcing variant will be beneficial for your company?

The growing popularity of outsourcing – not only in the IT sector – provokes a question: how to make it a suitable option specifically for your company? The nearshoring may be an answer.

The work market is changing dynamically. The pandemic has brought the breakdown of economics but also induced changes in business models of entrepreneurship from various sectors, including IT. Many companies were forced to switch to the remote model – at least partially – and declare that they will keep it going even after the pandemic is over.

The benefits of outsourcing

Even before it, the IT sector was already ahead of others, offering the employees the choice whether they want to work remotely or on-site and using outsourcing services on the daily basis. Now, the popularity of outsourcing in IT is growing even more rapidly as the competition on the market is enhancing. The benefits are not to be overlooked. While the outsourcing company or employee takes care of a particular aspect of software development or maintenance, the company gains more time and space for prototyping, testing solution, or creative processes. It can finally focus on perfecting their product instead of “putting out the fires”. GlobalPEO stands out in this having a China PEO and many other PEO across the globe that will help outsource significant employees needed.

Let’s not forget about another significant benefit of choosing to outsource – the reduction of costs. Delegating part of the work to the outside company, such as a reliable CPEO, can be a great solution to lower the spendings and keep the quality equally high. Select the best PEO for your business based on your need for an employment solution.

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Nearshoring vs. offshoring

Offshoring is a practice chosen by many modern entrepreneurs as a way to reduce the costs the company generates. Delegating part of the tasks or production to the business partner in another country can be very beneficial in financial terms. However, some problems often occur during such cooperation. The most common ones are related to cultural differences that can result in a different approach to quality, communication, and formalities. This way, even saving on the workforce, the company may have to face a financial loss in the end.

Nearshoring – outsourcing partnership with companies geographically and culturally closer to the company’s circle – is a growing trend among the European companies, but also ones across the globe. Choosing this model of cooperation allows avoiding common problems related to cultural differences, but also confidentiality and such prosaic ones as time differences. Working in different time zones can seriously affect the communication flow – avoiding this by choosing nearshoring partner can boost up the project processes.

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