Pros and cons of nearshore outsourcing

These days, the practice of hiring employees from a neighboring country who will work for lower wages is very popular. Large companies see it as an ideal alternative to paying higher salaries to people they hire in their own country.

This practice is known as Nearshore Outsourcing or, in a simple definition, it means having work or services performed by neighboring countries rather than your own country. Like the two sides of every coin, it has its advantages and disadvantages.

PROs

Nearshore Outsourcing offers the advantage of working in the same time zone, which is quite critical, especially when online interaction is necessary. At least no one has to stay up late or get up early; therefore, stress is reduced on both stakeholders. The work happens at the same time and there is better coordination throughout the project.

Geographic proximity means trips are closer and less expensive, so companies can visit their outsourcing partners frequently. Furthermore, there are commonalities between the two cultures involved. Since the two countries have similar cultural backgrounds, it would be easier to coordinate and communicate as your people most likely speak the same language; thus reducing problems due to cultural diversity.

The visa is an important consideration when traveling on business, as you may need to go from one country to another several times a year. With regard to countries near the coast, you do not need a visa to travel. The only thing you should make sure to bring before boarding the plane is your passport and plane ticket.

Cons

A disadvantage would fall on the country that performs the outsourcing. Most of the time, technical jobs are outsourced positions and as a result there are fewer job opportunities for graduates of this field in the country. Also, there would be a lower pay scale because they are not competing with foreign workers who would do the job for a much cheaper labor cost.

Second, there is the question of the possibility of copyright and patent infringement in a neighboring country where such concerns can be difficult to enforce. Likewise, the issue of Information Security is also raised when it is passed to people from other countries, since it may not be so strict and monitored in the country where it comes from.

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