Nearshore Business Outsourcing Has Significant Advantages Over Offshore Options

Ryan Bartholomew

Director of Operations
, Altiam CX
November 21, 2023
min read

Outsourcing has long been a favored operations choice for many business processes, especially for the varied tasks and multiple kinds of support that are gathered under the heading of customer experience. More recently, however, there has been a significant reappraisal of different locations for outsourced operations. Whereas once a very commoditized approach paid outsized attention to cost, so that the most far-flung operations at a considerable remove from the originating company and country was oven chosen based mainly on price, a more mature outsourcing assessment brings multiple other factors into consideration.

Eight Reasons to Choose Nearshoring over Offshoring

Here are some of the leading reasons many organizations choose operations for outsourcing in a nearshore environment, now that comfort, familiarity, accessibility and other positive characteristics are getting more attention.

  1. Proximity and Time Zone Compatibility: Outsource partners in neighboring countries or regions typically share similar time zones, allowing for easier real-time communication and collaboration unlike offshore outsourcing where distance and significant time zone differences hinder real-time interactions.
  1. Cultural Affinity: Nearshore outsourcing staff likely share more cultural similarities, making it easier to align goals and expectations. This leads to greater ease of doing business when employees have a better understanding of U.S. business practices and culture.
  1. Cost Efficiency: Nearshore outsourcing typically offers cost savings while reducing the risk involved in offshore outsourcing. Depending on the client and the business process involved, nearshoring can still result in a 40-80% cost savings over U.S. domestic operations.
  1. Language Proficiency: Nearshore workers often have higher English proficiency compared to offshore providers, making communication and language-related     challenges less of an issue.
  1. Reduced Travel Costs: Visiting nearshore locations is generally more cost-effective and less time-consuming than traveling to offshore destinations, allowing for more frequent and efficient face-to-face meetings.
  1. Legal and Regulatory Alignment: Nearshore countries often have legal and regulatory systems that are more aligned with those in the U.S., reducing potential legal complications.
  1. Similar Business Hours: Nearshore teams often operate within similar business hours, eliminating the dislocation of overnight work and disparate hours awake.
  1. Crisis Management: Nearshore outsourcing supports greater business continuity planning, as disruptions affecting nearshore locations may have fewer global consequences compared to offshore regions.

As a subsidiary of Altiam Global, Altiam CX and our clients benefit greatly from operating in the cost-advantaged, sustainable business location of Altia Smart City, in San Pedro Sula, Honduras. In addition to being only a short flight from multiple locations in the United States, our employees all have a strong cultural affinity with the United States. Let’s talk more about how we can offer you CX and team extension solutions to optimize your operations. Get more information here.

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