Advantages of Nearshore Outsourcing
Updated: Mar 25, 2019
With the proliferation of companies using Contact Center and Business Process Outsourcing (BPO) services throughout the world, companies have come to realize the importance of carefully selecting the contact/BPO centers most suitable to successfully support their business. One of the key considerations in this choice is location. The fastest growing choice in locations being considered today are Nearshore locations.
Nearshore outsourcing is the practice of obtaining services from a company located in a bordering region to the United States.
Since the opportunity to reduce operating costs for businesses using Nearshore locations is high (average reductions in costs are 40-50% vs. USA operating costs), more and more businesses have been following the trend and making the choice to gain the advantages of Nearshore outsourcing.
If you are the decision-maker at your company and looking for a better outsourcing solution; the below list of Nearshore outsourcing advantages might help you decide whether Nearshore outsourcing is the right fit for your businesses’ current and future needs.
· Reduced Operating Costs
It is no secret that having the option to hire employees with lower wages will have a major impact on a company’s operating cost and bottom line. Wages for employees that work at Nearshore companies is substantially less than USA wages. So, the key becomes quality. Can you hire the same or better quality employee at a Nearshore location as in the USA? à YES!. Can they speak and communicate with excellent English skills? à ABSOLUTELY!.
· Proximity to the United States
Nearshore locations are closer to the United States. This means travel time and costs to travel are dramatically reduced.
Most companies have a Vendor Manager and multiple personnel that visit the contact center multiple times a year. If you chose Offshore, like India or the Philippines, it takes 16-24 hours to get there. Also the cost is very high. By choosing a Nearshore call center location, you reduce costs and time to travel. And this makes your employees happier.
· Strong Cultural Affinity with USA
Different countries will always have different cultures and lifestyles. With many Nearshore locations, cultural differences are small and cultural affinity is high. This is due to the fact that the USA is close by and many residents and their families travel to the USA often and/or attend school in the USA.
· Excellent English Speaking Skills
Choose the right location and you will find a workforce that is not only substantially lower in cost, yet also speaks excellent English. This is a primary consideration when outsourcing.
· More Enthusiastic Workforce/Stability
Having Nearshore contact center employees, customer care or back office workforce can be more reliable compared to USA agents or even with traditional outsourcing companies. Why? Because these employees really WANT these jobs. Unlike in the USA, call center jobs are desirable. So, you can get really good, enthusiastic employees working for you, who don’t turn over (attrition) and again…are at a lower cost. And, the Nearshore contact center/BPO market is established. You will find that you are not paving the way…established Fortune 500 USA companies are already successfully utilizing high quality Nearshore partners… why not you?
· Higher Quality
Did you think this was possible?
Outsourcing at your Nearshore location will most likely also provide you higher quality. Why? Because this is all the contact center/BPO companies does. They specialize in the service you are outsourcing with them and most likely have better procedures in place than you currently have, better technology and tighter operational and quality ratios.
· Capture More of the Growing Hispanic Market (USA and Latin America)
The primary language of employees at Call Center/BPO companies located in Nearshore locations is Spanish. Are you looking to grow your business? Another big advantage of choosing a Nearshore location is you can now target and capture more of the growing USA Hispanic market and the growing LATAM markets. A new national survey shows that the Latino population in the United States rose 47% from 2000-2011, up to 51.9 million people. That is 16.7% more people just in the USA you can sell to.