When talking about outsourcing, there are certain factors that are important to take into consideration. Nearshoring, offshoring and onshoring are three very interesting modalities of outsourcing, all with benefits, but each one with different characteristics depending on your needs. Which modality is the most suitable for your company?
In our last blog “Importance of choosing a safe and reliable outsourcing company”, we highlighted how Interfaz’s extensive experience, and its team of certified and trained professional make the company a great partner in outsourcing services related to technology.
This time, we will highlight the advantages and differences of the three main layers of outsourcing: nearshoring, offshoring and onshoring. Three modalities that give you the option to outsource your operations to local, near-shore or off-shore locations. The benefits of choosing one or the other are multiple, and while they all represent improved project efficiency, increased productivity, and greater flexibility for internal teams, it is essential to understand their differences.
From our experience we can say that, based on these three approaches, there is no universal recommendation for companies. In order to be certain about which approach to choose, it is necessary to consider multiple factors, such as the objectives. Or it could also be very important to consider the time factor, related to the time and cultural differences that may arise. The truth is that the first thing to do is to establish your priorities, to define what is the goal when making the decision to establish a business relationship with an outsourcing provider. What do you expect to obtain: sacrificing quality to obtain lower costs, or finding a balance between both?
It is true that outsourcing has helped companies improve their efficiency, profitability and focus on their core competencies. According to the consulting firm Deloitte, more than half of the companies around the world have claimed to improve the quality of services and reduce costs, but it is also true that not all of them have achieved their goal. Why is this? In a way, many companies have made a hasty and wrong decision, due to the eagerness to solve their projects and comply. And this can be avoided.
The reality is that since this is a mission-critical strategic decision, there should be no chance of failure. It is of vital importance before any decision, to be clear about the objectives, expectations, commitment, processes, management, and timing. And for this, it is necessary to know in depth the advantages offered by nearshoring, offshoring and onshoring. This way you can compare them, and we can achieve the objective of this blog, which is that you can find an ally that adds value to your projects.
Differences between Nearshoring, Offshoring y Onshoring
Nearshoring
It is a strategy that involves outsourcing services to a supplier in a nearby country. For example, if a company in the United States outsources its software services to a supplier in Costa Rica, this is considered nearshoring. The advantage is the cultural and linguistic proximity, which reduces the language barrier and improves communication. In addition, the response time and travel costs are lower than offshoring.
Interfaz as a nearshoring ally
At Interfaz we are Costa Rican talent. Country recognized for offering high quality nearshoring services to companies around the world. We have a strategic geographical location, highly qualified staff with a fluent knowledge of English. In our company you will find a support of more than 20 years working with foreign clients, added to more than 100 qualified professionals, certified and committed to their schedules, times and demands.
Offshoring
On the other side, offshoring is the outsourcing of services to a supplier in a distant country, such as India, the Philippines or China. According to a Statista report, offshoring is an industry that has grown significantly in recent years. The main advantage of this method is the significant reduction in labor costs. Service providers in developing countries tend to have lower salaries than in developed countries, which reduces costs for companies.
Interfaz as an offshoring ally
At Interfaz, although we have under this modality factors such as different language and culture, we have a great capacity to adapt to the conditions and demands of any market. Clients in other countries, such as Ireland, can confirm this. In addition to offering a cost/benefit advantage, we also offer a guarantee of commitment to the results and quality of the work. That is why before starting any project, we clearly determine the workflow, constant reviews, continuous improvement processes and constant and direct communication with our clients.
Onshoring
Finally, onshoring is the outsourcing of services to local suppliers. This strategy is used in countries where labor costs are similar or slightly lower than in other countries. The advantage is that it reduces the potential risks of international outsourcing arrangements, such as the risk of loss of intellectual property, lack of control over quality and delivery times. In addition, onshoring helps to keep jobs and talent within the country.
Interfaz as an onshoring ally
At Interfaz we have the professional capacity and availability of personnel to work at your facilities, if you wish. We have professionals with a high possibility of aligning in a short time with the objectives of your projects and so we do not have to incur in a learning curve that requires additional time. We have worked for years with one of our clients, a leader in the financial industry in the Central American region, adding value and maintaining a close relationship supported by real results.
In conclusion, if your company is considering partnering with a solid company committed to achieving its goals and results, optimizing costs and delivery times, count on us. At Interfaz, no matter which modality you are looking for, we can help you identify the most important thing, which is to have a clear vision of the responsibilities, duties and skills required.
Contact us to learn more about our outsourcing services and to discuss how we can help you make the most of the opportunities we offer. Let’s work together to add value to your projects.