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Nearshoring Definition: The Advantages of Nearshoring and When to Implement the Strategy

Nearshoring Latin America
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Jason Bott
ByPor Jason Bott

Jason has been working as a consultant and project manager with enterprises of all sizes for over 20 years. His expertise lies in utilizing technology to solve problems that reduce costs and increase profits. He has been instrumental in implementing successful software projects for Shell, NOV, C&J, Nabors, Total, Halliburton, Baker Hughes, Noble, American Tower, AIG, NASA, Nike as well as many smaller firms.

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When streamlining a business, many companies decide to change the different processes that are carried out to improve the service speed or production efficiency. A strategy that has been quite popular in recent years in different regions, such as Latin America, is the nearshoring strategy. 

So, what is nearshoring? It is a strategy of placing part of a company’s operations in a location relatively close to where the consumer or the provision of services is located. This concept can be extended to operating in locations in the same time zone as the client or company headquarters.

✅ How Does Outsourcing Work?

Nearshoring involves outsourcing. As the name suggests, other companies provide services in other locations close to the company. This is done by sending part of the workload to these companies to areas that are less expensive due to the economy and, in turn, are closer to the place where the service or products are provided.


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✅ Advantages and Disadvantages of Nearshoring

Despite the benefits of nearshoring, it is not a solution to all problems because it has its advantages and disadvantages, some of which are outlined below:

Lowers costs by outsourcing different company processes.There is less control in the execution of processes by delegating part of the work to an external company.
Reduces workload by releasing certain processes to a third party.If specialization is not required, it can lead to unnecessary additional costs.
Enables company projects to be carried out with specialized personnel without the need to invest in their training.Training and resources for first-time implementation are required.
Allows for better workflow when working with people within the same time zone.It can take time to acclimate your workers to your company with the new nearshoring team.

✅ When to Implement the Nearshoring Strategy

If you want to implement a nearshoring strategy, keep in mind that you must be aware of your company’s needs, which will help you decide if it is a good idea to implement this business model. Then, you can check if your company could use this strategy based on the following criteria:

  • You are looking for specialized professionals to develop a project.
  • You want to save time in the hiring process.
  • You want to have a specialized team aligned to the time zone of your company.
  • You are looking to expand or integrate a new work team into your company.
  • You want to acquire an experienced work team that can provide you with a consistently good quality of work.
  • You want to save costs in the long run.
  • You are looking to implement the remote work business model (work from home).

✅ Nearshoring in Digital Marketing?

Due to technological advancement and the current situation, many companies are adopting digital marketing strategies to remain competitive in the market. 

Despite this, many entrepreneurs have difficulties implementing this strategy, which is constantly evolving. That is why digital marketing nearshoring companies are growing today. They offer the development of these strategies without the need for training a new team or trying to do research and invest precious resources. 

Thanks to this, many companies can adopt digital marketing strategies without having to face great risk because they do not have the necessary knowledge. It is enough to contact these companies to acquire a specialized digital marketing team that allows them to meet their objectives, thus maintaining their competitiveness in the growing digital market. 

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