Thanks to advanced technology, a company’s skillset no longer must be contained in-house. Outsourcing has become an increasingly popular practice in multiple industries, allowing the company to seek out competent individuals beyond the organization’s four walls.
Outsourcing can be divided into three categories depending on the region where a company chooses its outsourcing staff. These are nearshore, offshore, and onshore staffing. In this article, we will do an in-depth study on nearshore staffing services and why they could be the ideal solution for your business needs.
What Is Nearshore Staffing?
To define nearshoring, we should first know what staff outsourcing, also known as employee outsourcing, is. Staff outsourcing is when a company hires a third-party organization to source talent and oversee everything related to HR, staffing, employee of record and law compliance.
Staff Outsourcing allows you to access a wider range of talent and expertise, while saving time and money on labour costs. It will be easier for you to find someone with the specific set of skills that you need for your project. After all, you’re looking into the vast talent pool that exists beyond the borders of your company. There will never be a shortage of workers. Staff Outsourcing is also referred sometimes as BPO (Business Process Outsourcing) as you are outsourcing the process of recruiting and staffing.
Nearshore staffing, also known as nearshore outsourcing, is a specific type of outsourcing. It means hiring staff from regions that are within close geographical proximity. The workforce will be hired from countries neighboring the company’s country of operation.
In the case of nearshore staffing, a country with a similar time zone is typically selected. Hiring workers from different provinces or states can also be considered nearshore staffing for larger countries. For example, if your company is based in China, you can look for nearshore staffing services in countries like Thailand, India, or Vietnam; if it is based in United States, you will be hiring from Mexico.
What Are the Pros of Nearshore Staffing?
Staffing services nearshore means the workers you hire are just a short distance from you. This gives you some significant advantages. For example
Work With Compatible Time zones
If there is a small-time difference between your location and the staff’s location, overlapping working hours will make communication easier. It will help facilitate real-time collaborations and project coordination, which will, in turn, increase the efficiency of the working procedure.
Nearshore staffing services can cost comparatively less than onshore outsourcing, which is done within the same country. It is possible to reduce the cost of a project by up to 60% by nearshoring. This is especially true when you outsource work to a country with a lower living cost than yours.
So, while the level of skills will be similar, you will be getting the same service at a lower and more affordable price. Furthermore, by taking help from staff augmentation services, employees do not need to worry about managing payroll, HR and law compliance.
There might be situations where on-site interactions and training sessions are needed for the workers. If a face-to-face meeting is necessary, the small distance can help in saving both time and money for traveling in and out.
Culturally Similar Work Environment
Developing deeper connections with employees becomes much easier when there are similarities among team members’ identities. Neighboring countries tend to have a shared culture. There is likely a possibility of having similar backgrounds, languages, business practices, and work ethics.
As a result, communication and coordination will be easier. Due to the sense of familiarity, it becomes possible to exchange empathy and form a strong connection in everyday conversations. The smaller language barrier will reduce the chances of miscommunication. The lack of cultural differences will also significantly reduce unproductive disagreements in the team.
Protection of Intellectual Property
There is a higher chance of nearshore destinations having similar or compatible legal systems and intellectual property (IP) protection regulations for the nearshore staffing company. This is a helpful feat in safeguarding sensitive information and proprietary knowledge.
What Is the Difference Between Nearshore Staffing and Offshore Staffing?
The main difference between nearshore staffing and offshore staffing lies in the geographical boundary of both. As mentioned earlier, nearshore staffing is when the hired staff are from neighboring countries and regions, so there is less time zone difference.
On the other hand, offshore staffing refers to hiring resources and manpower from countries that are geographically far away from the hiring company’s location. It mostly includes outsourcing business services to countries located on a completely different continent. As a result, there are usually several hours of difference in the time zone between the company and the outsourced employee. For example, a USA company will be offshoring its staff to India or Philippines.
Why Should You Choose Nearshore Staffing?
There are both pros and cons to nearshore staffing, but there are many ways that it is more convenient and beneficial to your company’s unique needs.
If budget is an issue for you, then nearshore staffing can be more convenient compared to onshore staffing. Neighboring countries may have lower labor costs than your own, which you can take advantage of.
If your project is such that communication is a top priority, then offshore staffing can cause several problems, like slower response times. The time zone and cultural differences will also create an evident gap. But with nearshore staffing, the time zone similarities allow for real-time partnerships and avoid unnecessary delays or mismatched schedules.
Moreover, if your project requires frequent face-to-face meetings and in-person interactions, offshore staffing will make it nearly impossible to accomplish that. It might make onshore staffing look like a better option, but keep in mind that onshore staffing is usually much more expensive than nearshore ones. So nearshoring staffing allows you to take advantage of shorter travel distances at a lower cost.
In conclusion, nearshore staffing is often the better option because you’re getting access to a greater talent pool at an affordable cost while minimizing differences, hence why it’s becoming an increasingly popular choice for businesses worldwide. Recognized as the premier nearshore staffing company in Mexico, Remote Team Solutions is your go-to resource for sourcing and staffing the finest nearshore talent.