Nearshore and offshore are terms that have come to define one of the biggest decisions companies make when it comes to outsourcing.
Should they outsource their work to another company in another country, or should they do it themselves?
In this blog, we’ll explore once again what nearshore and offshore mean as well as in-house and their respective advantages and important things to consider.
What does outsource through nearshore/offshore means?
Basically, it is the process where you hide external resources or capital to execute a specific operation or project.
This includes a long list of industries and activities that can be performed by top talent outside of your country. Like hiring a nearshore call center to attend to all your customer service needs, debt collection, web development, among other areas.
In-House refers to the local employees or operations already or about to perform certain activities.
Handling projects in-house.
For a long time, depending on your local team to handle specific activities and operations was the norm. Naturally, because executives wished to have everything at reach in case a problem could arise.
Having a team in-house is totally viable to establish the foundations and have a direct decision on skill setting.
Also, shared values and vision are more of a possible reality when you set motivation goals directly every day.
This is reinforced since in-house teams tend to be very efficient, as everyone is usually in the same place, working under the same system, making communication simple and fast.
With these mentioned, if you consider having a full in-house team, then you also must consider the increasingly wages in western develop countries, and the specific demands within the job market.
According to data from the SBA, on average, an employee costs 125% to 140% of their salary.
This is something that could affect every type of business, especially small and medium ones.
But things have changed in the last decade, since outsourcing solutions have become attractive every coming year.
The main reason for this is the cost-effective aspect of the industry. Offering in a lot of cases the same quality, even an enhancement on certain activities by providing modern services and technology.
Whether you decide to nearshore or offshore, the two options offer less expensive living costs for residents, reducing labor wages but with the possibility to offer even more in terms of bonuses and benefits.
Furthermore, outsourcing companies constantly invest in professional staff and innovative tools to elevate CX operations, that way many businesses don’t have to worry about establishing certain departments or tool acquirement.
Worried about other legal inquiries like recruitment, insurance, safety and processes follow-up?
BPO got you covered, since it is a top priority to fulfill staffing requirements, including background checks and finding the right profiles.
The cost of initial and ongoing training. Miscellaneous items, such as uniforms and protective gear where needed.
And every process is followed, sending the necessary reports, just like any in-house teams. Executives can rest assured that they will be joined, all along the partnership with experts in the client services area.
In summary, there are many benefits to in-house and nearshore/offshore outsourcing.
The ability to work with companies around the world is great for businesses, but it can also be a challenge if they don’t have the right processes in place.
If that is the case, BPOs have become reliable in providing business development services so you can thrive alongside your product or service.
It is important that you find an experienced partner who will help guide you through this process so that there are no surprises along the way. We hope this article has helped clarify some of these issues!
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Content Creator Specialist at Redial BPO.
Loves to research and talk about politics, economics & culture. In his free time, binge watches movies & TV shows.