Nearshore outsourcing is emerging as a preferred alternative to traditional offshoring. And according to Amalga Group CEO Jens Erik Gould, there are many reasons why nearshore outsourcing has caught on among various U.S. industries.
“Nearshore outsourcing offers businesses a more strategic approach to global talent acquisition. Plus, facets like cultural alignment and proximity help to balance cost savings,” says Gould.
Below are the top seven advantages of nearshore outsourcing.
1. Same Time Zones as the United States
One huge advantage of nearshore outsourcing? Latin American countries are in the same or similar time zones as U.S. businesses. This helps to increase the efficiency of operations.
For instance, communication can be delayed when outsourcing to Europe or Asia. By outsourcing to Latin America instead, everything can happen in real-time.
2. U.S. Cultural Affinity
Latin American countries have an affinity for U.S. culture that often spills into their own culture. Some Latin American workers have family members who have emigrated to the United States, or have spent significant time in the U.S. themselves, which provides them with a sense of relatability.
When talented individuals have a connection with the United States, they’re more likely to understand the needs of U.S. businesses that hired them. Jens Erik Gould says this connection also increases communication, empathy, and respect across teams.
3. Cost Savings
Many companies turn to nearshore outsourcing because it provides huge cost savings. In fact, cost savings can total anywhere from 25% to 50% in such cases (compared to hiring on-staff IT workers in the United States).
“By reducing IT-related costs, U.S. businesses large and small can free up money to invest in other areas,” says Gould. “This enables these companies to invest more in areas that help their organizations grow.”
4. Strong Educational Levels
Investment in education in Latin America has steadily been on the rise these last few years. This has resulted in a larger percentage of the workforce being highly skilled in tech. As a result, developers and software engineers are well-trained to carry out whatever IT needs your company may have.
5. Strong English Skills
When you outsource essential business services, establishing clear and effective communication channels is crucial. Communication can be difficult if there’s a major language barrier.
English proficiency is high in Latin American countries—especially compared to other traditional outsourcing countries. This helps to cut down on confusion and frustration and leads to fewer mistakes occurring due to simple misunderstandings.
Another major benefit of nearshoring is the proximity of engineers to the United States. Many major Latin American hubs for nearshoring IT services are a short flight away from American airports.
This makes it easier for U.S. business leaders to travel and visit the team that will be handling their IT services.
7. Availability of Qualified Talent
Finally, Latin American countries have a wealth of qualified talent ready, willing, and able to serve your company well.
At a time when the United States is experiencing a major IT talent shortage, nearshore outsourcing provides a viable alternative to getting the job done—and done well.
About Jens Erik Gould
Jens Erik Gould is the Founder & CEO of Amalga Group, a Texas-based nearshore outsourcing company specializing in providing highly qualified talent in IT, software engineering, contact centers and business process outsourcing. Previously, Gould spent over a decade reporting on topics such as business, politics, and energy in the United States and Latin America for esteemed media outlets like Bloomberg News, The New York Times, and TIME Magazine.