Opinion

Is Nearshoring A Real Alternative to Offshoring?

Blackwell Consulting says nearshoring is a viable alternative to companies that want to outsource but pefer not to send work overseas.

By No Analyst or Consultant

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Nearshoring Risks

There are far fewer risks of choosing nearshore versus offshore, but each come with their advantages and disadvantages. As Kimberly Harris of Gartner Research says, choosing a nearshore country like Canada "can provide some cost savings&[and] fewer risks may provide viable options".⁴

Of course, offshoring is cheaper than onsite but if that is your only criteria when outsourcing your business operations you are not paying attention to the goal: Not only inexpensive labor, but also convenience; the ability to collaborate easily and effectively; and manageable risk. Nearshoring allows you to achieve all of these, enabling you to manage your outsourced business operations with minimal risk. This does not mean, however, that nearshoring is free of risks. Often the best solution is a combined model of onsite, offshoring and nearshoring. But the bottom line is don't let the hype of the offshoring discussion steer you away from what is practical and agreeable for your company.

¹ Young, Allie, et al. "Global Sourcing Demands New Strategies", Gartner Research. February, 2005.

² Young, Allie

³ Bradford, Adrian. "Make Sure Outsourcing Is a Good Idea for Your Call Center," Garner Research. June 2003.

⁴ Harris, Kimberly. "The Offshore Insurance BPO Market Has Not Yet Matured," Gartner Research, Feb 2004