Ready to start your nearshoring journey? This blog post will explore why nearshoring is becoming more popular and how your business can benefit from it.
What is nearshoring?
Nearshoring is a business practice or strategy that involves having a company operate in or provide services in a “neighbor country.”
near•shore ni(e)r SHôr adjective
“Nearshoring is the transfer of business or IT processes to companies in a nearby country, often sharing a border or time zone with your own country, where both parties expect to benefit from one or more of the following dimensions of proximity: geographic, temporal (time zone), cultural, linguistic, economic, political, or historical linkages.”
What is a neighboring country?
A nearshoring business differs from an outsourcing firm because the country you are partnered with is closer to yours than most. When people think of outsourcing, they usually refer to China or India. But with nearshoring you
don’t need to go that far.
The real difference from outsourcing is that nearshoring can offer businesses many more benefits such as increased efficiency, cost savings, and higher-quality products and services due to immediacy. This way, you can make decisions quicker and more efficiently.
Time is money.
The objective of using external providers is also to reach international markets, improve the quality of your business, and create a strategy that can focus on expansion and progress.
Tapping on global talent can make your business an authority in the market.
Different types of nearshoring services
- 1. IT and software development.
- 2. Business process outsourcing (BPO).
- 3. Customer service and support.
- 4. Manufacturing and production.
- 5. Retail and e-commerce.
Why does a business choose nearshoring?
Taking this strategy can change how a business works. You partner with a company that is committing to your vision but doing it their way. Going through this process takes innovative minds, the desire to see growth beyond your comfort zones, and the need to see anything you produce come out sharp and with the best quality.
It’s a process that takes time and trust; don’t think otherwise, but it’s worth it.
Once you decide to nearshore your business, you start your searching process for the right partner.
There are several reasons to choose it. The most common causes include increased efficiency, cost savings, and higher-quality products and services. But it will come down to what your business needs and where it can improve.
Doing an inside analysis of your business will clarify that. From there, finding a partner to reach those goals will be an easier road.
Tips for successfully implementing nearshoring
Thanks to competition and demand, nearshoring assessment firms are easier to find than it was before. Nevertheless, just like a relationship or a puzzle, it takes time and elements in common for it to succeed.
Choosing Costa Rica
With the pandemic affecting the world and people no longer commuting to work as demand, Costa Rica has become a top choice for nearshoring. The country has seen political and financial improvements, with skilled professionals and remote working opportunities becoming more available to businesses needing to expand.
The alphabetization rate is 98%, with more than 14 free trade agreements, including the U.S., China, and Europe. It has an attractive taxing system and the latest invitation to join the Organization for Economic Cooperation and Development.
(OCDE). According to Álvaro Goicoechea, Costarican CINDEs Assessment of Investment manager:
“In the case of the U.S. market, Costa Rica is an ideal option because it has a similar time zone that allows the supplier’s chain to be close, in a way that facilitates the exportation and importation process.”
Kirk Laughlin, Nearshore America’s director, commented that Costa Rica could become a market leader in nearshoring, soon taking the lead from India.
For example, DNAMIC is a Costa Rican-born nearshoring development business where we recognize the essential fact of understanding the project and the company, its essence, and its vision. We tackle the needs and upgrades that have to be done with the insight directly.
The hand-in-hand process works with clear communication, so the results are optimal and beyond the standard established.
Advantages of nearshoring
The pros of nearshoring are growing with time. The remote, highly effective, the well-communicated option makes it more attractive for any company to consider. Compared to outsourcing, nearshoring in Latin America can save you over 20 hours of flight, miscommunications, or extra effort to express your vision.
Any business needs innovation to stay afloat and compete in the market, so you need quicker, more creative, and more effective results.
Nearshoring with DNAMIC
When a company resettles to a foreign country that is geographically near, all the obstacles mentioned dissipate with effective communication and understanding. A nearshore partner can overcome and make a thriving path paved with trust and hand-in-hand development. Transferring operations to a neighboring country has a cost-effective partnership while having a productive remote team that will enhance any business.
With DNAMIC, finding the nearshoring experience you want and need is a click away. Contact us or learn more about our multiple services.
CHECK OUT OUR SUCCESS CASES HERE!
The software factory effect in Costa Rica has proven to bring the best solutions for multiple problems that businesses in distress or just with the desire to elevate themselves have.
For example, nearshore in Costa Rica offers high-class experienced staff with cutting-edge technologies and software specialists. We can bring the quality and quantity necessary to upgrade a business with an understanding of your culture and fluently interact to get feedback, problem-solving, and out-of-the-box thinking to the table.
DNAMIC assures the most desirable outcome with a team you can trust.
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