4 important advantages of nearshoring
Nearshoring: a buzzword that has become increasingly popular in recent years. But what is it exactly? And what are the advantages? And what is the difference with offshoring?
Nearshoring is outsourcing your activities, particularly in IT, to companies in countries relatively close to you. The IT sector is an attractive sector for nearshoring as European nearshoring countries have invested heavily in technology over the last few years. At the same time hourly rates are considerably lower in these countries. This means good quality at a low or lower price!
But if you use offshoring, you outsource your work to countries that are further away. Your aim is then always to save costs. The only disadvantage of offshoring is that you often come up against a language barrier and a considerable time difference. Fortunately, there are a number of companies on the market that can help you cope with this.
In addition to cost savings and guaranteed quality, nearshoring has 2 other important advantages. We will list them for you:
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1. Cost savings
Just like offshoring, nearshoring in IT results in a reduction in fixed costs. It is not only the IT sector that has seen rapid growth in recent years, programmers’ wages have also risen in Western Europe. So currently it’s pretty costly to set up a high-quality IT team within your company.
European countries are frequently turning to countries in Eastern Europe within the framework of nearshoring. The IT people in these countries charge a considerably lower hourly rate. And thanks to the high-quality IT courses offered there, you don’t have to worry about loss of quality. Maintaining quality is very important, as in software development it is often true that you get what you pay for. So you hire in IT staff at a lower rate, with no quality loss.
By using nearshoring as a company, you also save on other costs. Travel costs, for example. As if you have your activities taken over by countries close to you, it’s easier to have face-to-face contact with your team, without having to spend hours on a plane in order to meet them.
Education is key for companies working with nearshoring. Countries that are popular for nearshoring invest hugely in education. In this way they guarantee that their IT students graduate with the necessary qualifications. Once they have immersed themselves in the job, you can be sure that these programmers are completely up to date with the latest developments and are on a par with your own IT team.
So you don’t need to worry that later down the line you will have to troubleshoot errors or that your internal programmers have to rewrite lines of code!
3. Increased (temporary) capacity
Do you need to increase your company capacity or to increase it temporarily? Then nearshoring is the way to go. Nearshoring means you can look quickly and efficiently for suitable additions to your IT team.
These IT people often already have experience with remote and project-based working. Moreover, these experts are highly qualified and can react quickly to change. They are trained to seamlessly take over your current way of working.
Do you need a team that works with you onsite, or would you prefer everything to take place offsite? Or perhaps you want to hire in a few people and have the rest of the work carried out offsite? If you use nearshoring, this is entirely up to you!
4. Less cultural differences
Whereas with offshoring you quickly come up against a language barrier, time difference and different legislation,you don’t have to worry about this with nearshoring.
As you are working with countries close to you, it is very likely that you speak the same language as your nearshore teams. Or that you have at least a good knowledge of a language you have in common.
Moreover, you don’t have to take account of big time differences, so that all day long you can communicate easily with your team.
And another advantage of nearshoring: if you remain within the European Union, you are already familiar with the legislation. So you don’t have to waste time or budget trying to work out the legislation outside the EU, which is often complicated.
Nearshoring gives your company the opportunity to hire in talented IT staff exactly at the time you need them, and for the period of time you want. This flexibility results in considerable cost savings, while the quality remains guaranteed at all times. So definitely added value!