The last few years have been pretty rough for the outsourcing industry as it suffered at an international level: economic, social and security changes are responsible and if that wasn’t enough, nearshoring is on the rise.

Delivery Preferences

The biggest challenge in outsourcing governance has shifted towards downstream risk mitigation by choosing the best delivery location. The outsourcing world became fully aware of potential safety risks offshoring brought upon themselves.

The cost savings gap between India and other popular locations such as Central Europe and Latin America decreased to less than ten percent. Central and Easter Europe are also viewed as a safer location site to host your BPO and ITO services.

The close proximity to the main facilities made it possible for a shift in delivery preferences towards nearshore and sameshore options alike.

Having contact centres nearshore and sameshore is the current trend and there are no signs of any changes in the upcoming years.

The Growing Trend

The shift in delivery opens up new possibilities for all the countries gathered under the so-called nearshore umbrella. The number of nearshore sites themselves has grown significantly.

Managers need to be aware, everyone is gunning for that nearshore multi-billion dollar pie – you’re bound to encounter some really “exotic” places thanks to advertisement and marketing. Proven nearshoring locations include Canada, Latin America, Central Europe and Poland.

The Nearshore Zone

But what defines a nearshore location? There are two rules mostly used in the outsourcing industry. The first one is that you don’t need to cross the ocean to get your nearshore site. The second one is quite similar, up to 5 hours of flight.

We believe that nearshoring locations should be aligned along a spectrum of potential outsourcing sites. On one end of that spectrum are locations such as China and India, on the other Poland and other Central European countries that specialise in BPO and ITO services.

Geolocation should never be the determining factor when looking for a potential nearshore location. Linguistic and cultural ties are also a key factor, even education similarities and directness of communication can be a deal-breaker.

Take the above factors into consideration before you choose a nearshore location or a partner since they tend to play a far more important role than they are given credit for.