With so many buzz words floating around it’s tough to keep track of them all. Thankfully, “nearshore,” is simple to understand. “Nearshore,” refers to remote resources who are not as far as “offshore,” when compared to your company’s location. For example, if your company is located in Detroit, Michigan, a team in Bangladesh or India would be considered “offshore,” because of the large discrepancy in time zone and distance. In contrast, a team located in Tijuana, Mexico would be considered “nearshore,” as they would be in the same time zone and are relatively close to your location.
There are numerous benefits to working with remote developer teams, and in fact many companies see cost saving as just the tip of the iceberg. Here are some of the perks of working with nearshore contact centers:
I. Same Time Zone - Work Better, Together
The biggest benefit is the added ability to integrate the remote team into the fiber of the company. This helps increase collaboration with the U.S. team. Being able to host meetings with the rest of your own internal team when they are most attentive will allow all parties to work better together.
II. Talent - Human Capital
Many countries’ “nearshore,” have made considerable investments into educating their own work force. In fact, according to the Brookings Institute, the education systems of some Central and South American countries rank among the best in the developing world for the countries that participated in their studies. This means that there is a growing pool of human capital being developed much nearer than in the Orient and India.
III. Diversity - New Perspectives
An increase in organizational diversity yields new perspectives for the same problems. At times, being able to have a different set of eyes review the most technically challenging problems is what is needed to surmount the hurdle. Studies have shown that increasing diversity in an organization has positive network benefits such as an increase in communication and a greater adaptability to changing business environments.
IV. Similar Culture - Easier Communication
Because of proximity, most nearshore locations have closer cultural affinity to their primary markets than offshore locations. Mexicans for example are very familiar with U.S. lifestyles, customs and styles of communication, especially in cities like Tijuana in Baja California, Mexico. In addition, because of NAFTA, Mexico has not only been an important manufacturer and provider of services to the U.S., but is an important market for U.S. businesses. This business exchange has further increased familiarity between the two cultures, helping to minimize communication issues due to cultural differences. In addition, because of NAFTA, visa issues are virtually non-existent as Mexicans can obtain TN visas (renewable 1 year term) easily.
V. Cost Savings - Reduce Overhead
Depending on the location, cost savings can be equal to that of offshore locations. For example, Mexico was able to give substantial cost savings to U.S customers that were comparable to cost savings in India because indirect costs such as contracting costs, due diligence, communication and travel were lower.
Bonus -
You have the chance to travel to Mexico! There is nothing like a face-to-face meeting to get the job done right. Thankfully, the cost of travelling to Mexico is comparable to traveling domestically. So, suite up your passport and get ready to become international. Mexico is a beautiful country abundant in natural resources and several major cities to enjoy when visiting.
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