As companies expand, their staffing requirements become more challenging. Companies often resorted to offshoring or using business process outsourcing (BPO) services to fill those needs, but these usually imposed plenty of problems including time zone differences, culture gaps and language barriers. While executing complicated positions such as these in-house remains a great challenge, applying nearshore solutions is now creeping to the surface instead of outsourcing jobs to Asia.

Access to Specialized Talent

Nearshore staffing enables companies to work with extremely talented employees who fill complex functions like design, finance and marketing. In Mexico, for instance, businesses can utilize a qualified pool of people who are knowledgeable on different industries and are ready to work on complex projects. According to a study by Deloitte, companies that outsource to nearshore regions have success rates of project completion higher by 3% to 5% since there is effective talent and business needs alignment.

Enhanced Communication and Collaboration

One of the main concerns companies face when offshoring is the time zone gap, which can affect project schedules and possibly make communication ineffective among team members. On the other hand, with nearshore staffing, companies have the benefit of operating under the same, or nearly the same, time zone. This proximity leads to increased real-time communications, enabling faster return of work cycles and improved collaboration. A study done by McKinsey shows that real-time communication is one of the top three reasons that are making companies move from offshoring managers to nearshore staffing for critical roles.

For example, one of RTS’s clients, after shifting from offshoring in the Philippines and India, experienced remarkable communication and team bonding. Shifting work to staff in Mexico increased collaborative efforts and reduced projects’ timeframe, thereby unifying and energizing the technical staff. While outsourcing employees in far-off regions leaves a gap in distance and engagement, deploying employees through nearshoring takes away those limitations, thus allowing constant interaction through daily huddles and live issue tackles.

Cost Efficiency Without Sacrificing Quality

While cost containment is a valid reasoning for a business, it should be exercised without compromising on quality and service standards. Nearshore staffing enables enterprises to lower their operational expenditure while enjoying the services of highly qualified experts. While offshoring can save businesses around 10% to 20% more than nearshoring, it is better used for more transactional roles that might not need to be on the same time zone or have similar cultural alignment.

A nearshore staffing model allows cutting back on labor costs without impairing the quality of the newly recruited staff. Companies can reduce operational expenses significantly while keeping the level of reliability and expertise required for core functions of business.

Cultural Alignment and Employee Engagement

One of the most distinguishing features of nearsourcing as compared to conventional BPO or outsourcing models is cultural compatibility. When the entire team is working in nearshore geography, they enjoy the presence of individuals who have a similar culture, work ethics and values as them. This has implications for the onboarding process, the team dynamics and, in particular, employee engagement. An article from the Harvard Business Review observes that in terms of retention and engagement, companies with culturally aligned teams perform at a rate of 30% or better than those that do not.

Cultural similarities also play a crucial role in team retention. Nearshore employees tend to feel like an integral part of the company rather than a remote or external asset. They are more likely to stay motivated, remain engaged and contribute meaningfully to the company’s success.

Nearshore staffing is gaining traction in companies that still want to implement a staffing strategy but want their team to be working in the same time zone and have a similar culture. By using nearshore staffing, companies can recruit even the most sophisticated staff faster, be more productive and aim not only at a particular project but also at nurturing a team for future projects. With the investigation, interests and demands from the market changing, the use of a nearshore staffing model offers an opportunity for a strategic option for growth.