At the beginning of 2023, globalization continues its course despite all the events that have deeply affected both the economy and some technological advances that in theory could be available but have had to wait given. Such as the COVID 19 pandemic that hit the majority of humanity indiscriminately. However, nearshore has increased its application in many countries, an increasingly common practice not only here in Spain, but in much of Europe.
Nearshore
What is Nearshore?
Nearshore, also known as nearshoring , is identified as a type of subcontracting or outsourcing of some of the company’s services or activities to countries other than its own. Which allows for reduced costs, generally due to lower wage costs. Although it may also be convenient due to higher quality raw materials, certain tax advantages or access to technical skills.
the limitations arising from phenomena
In this case, nearshore is understood from the software point of view, when a company outsources software development work to a country adjacent to its own. For companies in the US. Nearshore outsourcing generally means sending work to software teams in Latin America or North America, but in Europe, the main destinations are Spain, Portugal, the Czech Republic. Hungary, Slovakia, Romania and Bulgaria, since unlike offshore, the company that chooses nearshore opts for nearby countries to benefit from overseas data their geographic proximity, economic and political ties, as well as cultural and legal similarities.
The main motivations for carrying out this practice are: reducing costs, optimizing business strategy and accessing technology.
These are the 7 advantages of nearshore
Geographic proximity:
Nearshore represents a double advantage for companies. On the one hand, geographic proximity allows for cost savings in the shipping of goods, as well as avoiding the typical obstacles and. Customs fees generated when trading with countries outside the European Union. It also implies a reduction in transport time and more efficient customer service, and the best thing is that the same applies to software development.
Low investment
This nearshore trend is increasingly on the rise and will be boosted this year. Working in this way allows. You to hire technology experts and keep the team together without having to make large budget investments.
3. Boosts growth:
Clearly one of the main benefits will be reinvesting in other areas by outsourcing some services, which will give you scalability, increasing income through an internationalization strategy.
4. Attract talent:
By not having a single headquarters or bgb directory location, and instead outsourcing across multiple countries and territories. Technology companies primarily facilitate the workflow for multiple talents, reducing integration time.
Competitiveness
By outsourcing some processes, a more flexible structure is acquired, which will allow a quick response to market changes. This will allow a company to be more competitive compared to companies with more rigid structures.
6. Quality
When relocating directly, the work team is far away, therefore, access is more limited, affecting the hierarchical structure . However, if it is done nearshore with geographical proximity. It is easier to supervise the necessary quality standards.
Cost savings
The intention of 80 percent of companies that apply this practice is to save costs, as explained by the University of Navarra. Explained in the benefit of reducing fixed costs, mainly salaries and social security contributions. Basically, it is an outsourcing that can save staff, time, resources, facilities and many other things.
If you are interested in applying nearshore for your company or project, at The Cloud Group we are ready with our wide range of technological services in terms of custom software, artificial intelligence. Big Data top 8 seo optimization myths services, and custom plugins. Do not hesitate to write to us or contact us at the lines we have available for you in the 6 countries where we have a direct presence or call us at +34 910602524 in Spain.
