Business success requires a constant balance between profit and overhead. Decision makers are consistently seeking optimizations to allow for greater growth. Many businesses seek new avenues for supplying high quality with a lower price tag. For many organizations, nearshore outsourcing is the answer. Nearshore outsourcing offers the following benefits.
Nearshoring allows you to provide an improved customer experience
In the past, traditional outsourcing has gone to countries such as China and India. Companies were able to utilize a large tech talent base at a lower cost when compared to sourcing domestic teams. However, over time, these benefits are now being overshadowed by “different” costs.
Historically, offshoring was seen an attractive cost-cutting method. But, language barriers and time zone differences make it difficult to provide an exceptional customer service experience. With so many factors impacting how we do business in the modern world, studies are showing that customer experience will arise as a leading factor in who dominates the market.
In fact, HuffPost reports that,
- 67% of customers report a negative experience as the motivation for churn.
- 91% of customers who identify as noncomplainers will simply take their business elsewhere.
Nearshoring allows companies to access an outsourced talent pool which shares time zones and customs with your customer base. This alignment enables better communication and allows for an improved customer experience.
Nearshoring is more efficient and timely
Nearshore outsourcing to Latin America allows companies to leverage shared time zones and customs. Mexico is also ideal for nearshore outsourcing because the country shares a border with the United States. Companies often cite frustrations with offshore outsourcing that cause lags in efficiency and delays in fulfillment or resolution of issues.
Among these complaints are communication difficulties and opposite work schedules. In addition, “50% of employers that outsource say the quality of their service providers and a reactive versus proactive attitude are the most frustrating issues to deal with.” When you choose nearshore outsourcing, many of the communication barriers and time constraints are resolved due to the close proximity of the outsourced talent.
Nearshoring simplifies business travel
Even with the best of outsourcing, a face-to-face meeting is sometimes essential to align processes and ensure business goals are being met. Travel to Mexico and other Latin America countries is significantly cheaper and faster than a flight to Asia or other outsourced countries. The shared border means that travel could even be accomplished via land if necessary. Shared time zones also make it easier to collaborate with your outsourced teams as you are operating on the same schedule.
Nearshoring provides scalability
Most businesses operate with growth in mind. For accounting, this involves crunching the numbers, but for technology, growth means scaling. With nearshore outsourcing, companies can scale as the need arises, quickly leveraging more or less resources. If your business experiences significant growth over a short period, nearshore outsourcing can provide the flexibility that is needed for uninterrupted business operations.
Choosing to source your talent internally means that your business will incur the time and costs needed to recruit and train the right talent. With nearshore outsourcing, tech talent is immediately available.
Nearshoring helps with customer retention and brand loyalty
In a world where customer experience is driving brand loyalty and customer retention, utilizing nearshore outsourcing can positively impact your ability to retain customers and create brand loyalists. With more efficient operations and timely delivery of products and services, you will be providing an improved customer experience which will lead to better consumer retention. This can result in huge costs savings as it costs five times more to acquire a new customer than it does to retain one.
Nearshoring offers significant cost savings
The benefits listed above combine to make for significant cost savings. Nearshore outsourcing will help companies realize a lower financial burden in the following ways:
- Reduced travel expenses
- Less money devoted to new customer sales
- Lower wages for tech talent
- Less human resources costs for internal hiring and training
- Better customer retention
- Faster time to market
- Improved efficiency and fewer delays
Nearshore outsourcing is a high-quality solution for any company seeking to lower their overhead. Not sure where to start? Contact us today for more information!