What is Nearshore Outsourcing?

Some historians feel like globalization has stalled. After all, conventional wisdom suggests modern cross-border capital flows are a long-shot from the Han dynasty’s silk road, worldwide trade routes, and sphere of influence.

In fact, from a physical transaction standpoint, it may seem like international commerce has regressed. However, that sentiment couldn’t be further from the truth. In reality, globalization has never been more alive. It’s just evolving into a new sector.

As technology developed, cross-border trade moved to a digital landscape. And in this new phase, nearshore outsourcing is becoming an increasingly popular choice for businesses competing in a rapidly changing market. Here’s why.

What Is Nearshore Outsourcing?

Essentially, nearshore outsourcing refers to the practice of supplementing your business processes to companies located in neighboring countries. For example, a company in the United States could outsource to Mexico, or a Brazilian company might partner with a prodiver in Peru. These services, also known as “back office” tasks, include the following:

  • Accounting: financial, managerial, tax and audits.
  • Human Resources: generalists, managers, coordinators and specialists.
  • Customer Service: phone, email, social media and web chats.
  • IT Support: Tier 1, Tier 2, Tier 3
  • Claims Support: overflow, material damage, total-loss & recovery.
  • Telemarketing: outbound calls, inbound calls, lead-gen.
  • Software Development: full-stack, mobile, web and cloud.

While these jobs are crucial to the overall success of your business, they’re not directly related to your core revenue growth. Because of this, many organizations find it advantageous to look outside of office walls—and domestic borders—to outsource their workload.

5 Practical Advantages of Nearshore Services

1. Proximity

Having a trusted business partner located nearby makes collaboration much easier, especially on time-sensitive projects that require real-time communication. Additionally, because nearshore outsourcing companies are often located in countries with similar backgrounds, language barriers are rarely an issue. Many companies employ agents who are fluent in:

Your company’s decisions directly shape consumer behavior—and ultimately, profit margins. That’s why it’s essential to deliver effective communication at every turn in the customer experience.

2. Specialized Expertise

Nearshore outsourcing helps your businesses take advantage of economies-of-scale, global connections, and specialized expertise. Thanks to their years of experience and knowledge of the industry, most nearshoring companies can handle back office tasks much more efficiently compared to in-house crews.

3. New Tools and Tech

As global trade becomes more reliant on the digital sector, it’s essential to use new tools to streamline your daily efficiencies. Luckily, most nearshoring companies leverage emerging developments to stay competitive, meaning you’ll have access to new technologies and tools that your organization may not have been able to implement on its own.

4. Improve Compliance

Inside the digital sector, the importance of compliance is second-to-none. With the efficiency of your day-to-day operations relying on technology, you can’t afford to lose time, or profits, at the hands of tech issues. And that’s the value of nearshoring, for example: by outsourcing your IT department, businesses can mitigate the risk associated with non-compliance with a trusted provider.

As a helpful rule of thumb, when you’re searching the web for nearshore services, look for companies with experience in tech support. This helps you rest easy knowing they have the expertise required to comply with cybersecurity regulations and federal legislation.

5. Cost Savings

Lastly, but just as important—cost savings.Hiring, paying, and training a new When your team gets bogged down with back office tasks, it slows productivity. Moreover, the resources, salaries, and benefits behind a new department is expensive. Luckily, with nearshore outsourcing, there’s a better way to get things done.Compared to a domestic team, nearshoring companies can perform a wide-range of office functions at a significantly lower cost.

Simply put, by working with outsourcing partners located in nearby countries, businesses can help streamline their daily efficiencies. However, it’s important to note you need to do your due diligence when selecting a nearshore outsourcing partner.

Reliable Nearshore Outsourcing: It’s Closer Than You Think

Yes, nearshore outsourcing helps streamline business operations, support back office tasks, and increase your daily efficiencies. But it also delivers something even better—peace of mind.

Enter GGA Solutions. As a nearshore provider based in Tijuana, Mexico, just 15 minutes south of San Diego, we do it all without compromising quality or visibility. Even better, GGA’s entire leadership team has experience holding executive-level positions for a variety of U.S.-based corporations, meaning we know what it takes to improve your bottom line.

At the end of the day, your nearshore provider should share a passion for cost savings and reliable solutions, and that’s exactly what we do at GGA. Get in touch with our expert team to learn more, or schedule a free consultation to get started.