| Tried Outsourcing and found it impossible? | | | | stellar (missed deadlines, incomplete work, etc). The |
| Nearshoring might be the solution. By now, we all | | | | benefit of being in the same time zone ultimately |
| know the potential benefits of outsourcing with the | | | | mean that through phone communication, chat or |
| potential for saving time and money being at the top | | | | email we can keep on the same page in real time |
| of the list (eg People in India will work for less than in | | | | with our foreign nearshoring partners. Travel is also |
| many Western countries). But if you have tried it you | | | | easier when a project requires frequent flights from |
| may have noticed some problems with this work | | | | the project site and our home base. |
| situation. If you have read my last blog on | | | | Economic benefits can also abound when nearshoring |
| outsourcing problems, you know several of the | | | | to some countries. The US dollars unfortunate slide |
| problems already. | | | | over the past few years mean that companies in |
| Nearshoring is a derivative of outsourcing, the main | | | | places like India are forced to raise their prices. While |
| difference being that services are sent to a | | | | that problem is true with several nearshoring |
| lower-wage country that is in relative close proximity | | | | countries as well (for example Brazil and Mexico), |
| (either by zone or distance and sometimes it's both). | | | | there are other countries that have maintained the |
| Firms that use this strategy are hoping to capitalize | | | | same exchange rate with the US dollar despite the |
| on the on the lower costs of the nearby country | | | | decline. Most notably, Argentina has traded at the |
| without suffering some of the challenges of | | | | same rate vs. the US dollar for the last several years. |
| outsourcing to farther countries. | | | | After outsourcing to India and other Asian countries |
| Examples could include a firm in the United States | | | | (with little luck) over the past 18 months. Our US |
| sending work to Argentina or a Japanese company | | | | company has been able to develop several succesful |
| having services done in China. | | | | projects by nearshoring to Buenos Aires. In addition |
| What are some of the other advantages of | | | | to advantages of having a partner in the same time |
| nearshoring? | | | | zone, the excellent work ethic, education and |
| Often times there are certain cultural beliefs that | | | | competitive landscape in Argentina have really paid |
| both countries hold close. This can include similar | | | | off. |
| holidays, work schedules or mindset. Countries that | | | | Our web design services have been completely |
| are vastly different in cultural beliefs (like the United | | | | nearshored to a firm there. Because many of their |
| States and India for example) face major obstacles | | | | employees have done stints in ad firms in the US, |
| in terms of communication right from the beginning. | | | | Singapore and Europe, we could the same quality of |
| Time zone similarities also provide advantages over | | | | work we used to find in our US ad agency. But at |
| outsourcing. At first with outsourcing we believed | | | | 50-70% less in fees. There are other firms we |
| that we could just deliver the project scope to the | | | | employ for software modules and as we review |
| folks in India and the next morning, we'd wake up | | | | more of their work, I will report back with the |
| and presto it would be delivered in our inbox. While | | | | findings and recommendations. |
| that was great in theory the reality was less than | | | | |