Nearshore Outsourcing Trend Grows Across the World

Although Nearshoring concept became a widely popular business practice across the Europe it's still in emerging phase in the Western Hemisphere mainly because of strong popularity of India offshore offerings. However, escalating uncertainties of regional threats in India combined with increased focus on vulnerability management and demand to keep data close to where business actually located have changed delivery preferences of US businesses towards nearshore and sameshore options.

Recent ranking "The Nearshore Americas Power 50" named the most influential Nearshore figures from 16 countries from Americas region. The region is considered to be the main nearshoring destination for US and viable alternative to offshoring to India. The $11 billion industry has all chances to successfully compete with offshore destinations as realities of unsafe world have fully overrun into outsourcing decisions. Focus on vulnerability management and operating with lowest downstream risks help nearshoring destinations to attract more attention.

The survey being made by Black Book Research indicates that Central and Eastern Europe and Latin America are viewed as significantly less dangerous outsourcing locations that all major hubs of India and being marked as the top destinations for operating with lowest downstream risks. Having services centers nearshore and sameshore will be a major client priority in years to come.

From other side in nerarshoring study conducted by Erran Carmel and Pamela Abbott argue convincingly that distance still matters, and point to customer choosing the nearshore option to gain benefit from one or more of the following constructs of proximity: geographic, temporal, cultural, linguistic, economic, political, and historical linkages.

Central and Eastern Europe is significant nearshoring destinations for Western Europe for more than a decade. Where geographical and cultural proximity provides with lower costs interaction, better communication and no time zone difference. As a result project management became more transparent, time zone eliminates the need in extra work and cost difference dilutes.


Mexico Outsourcing said...

Competition to India from Eastern Europe, Latin America and other Asian countries is growing, but Indian providers apparently don’t feel the heat. Nearshore is also mentioned as a strong trend.

Outsourcing Philippines said...

There has been a lot of discussions and debates about outsourcing but we still hope that it would turn out positive and for the best of everyone in this world not just to favor to one country.

Software Development Outsourcing said...

Outsourcing involving the contracting out of a business function - commonly one previously performed in-house - to an external provider.In this sense, two organizations may enter a contractual agreement involving an exchange of services and payments. Of recent concern is the
ability of businesses to outsource to suppliers outside the nation, sometimes referred to as offshoring or offshore outsourcing. For more details you can visit the website softwaredevelopmentoutsourcing(dot)org and services-outsourcing(dot)org