Nearshoring, Making Your Business Quickly COVID-19 Resilient
What is nearshoring?
Outsourcing has proven to be an effective model for companies looking to save on overhead and labour costs while improving efficiency. It is a model that can be scaled while still giving companies the option to adjust their resource distribution as necessary. Outsourcing can also improve productivity and give businesses the chance to focus on their core products and competencies.
Most companies choose to outsource in one of two ways: nearshoring and offshoring.
Nearshoring is the outsourcing of business processes, especially information technology processes, to companies in a nearby country, often sharing a border with the target country.
Using this model allows businesses to move their operations to a closer, more cost-effective location. This close proximity allows for fewer time zone differences, cultural discrepancies, and a greater level of control in decision-making processes.
Benefits of nearshoring
Nearshoring is becoming a popular choice as many companies begin to favour close geographical proximity. Nearshoring allows companies to bypass language barriers and cultural learning curves and reduce travel expenses.
Nearshoring provides many benefits, such as cutting expenses and guaranteeing better controls that will lead to higher quality products. It also offers access to more skilled workers and lower labour costs which improve both quality control and customer service.
To resume, here are some of the key benefits of nearshoring.
- Nearshoring allows businesses to cut costs.
- It allows companies to find top expert knowledge otherwise unavailable in their own area.
- Nearshoring allows entrepreneurs to build partnerships with other entrepreneurs who share the same language and culture.
For whom is nearshoring relevant?
Maintaining a successful business is not an easy task these days. There is an enormous amount of supply that cannot be met by demand in most cases. That is why businesses are always competing with each other for the place ‘under the sun’. Luckily for owners, there are many new opportunities that make that easier, each day. One of those opportunities is a nearshoring model of outsourcing.
Many companies outsource to get access to specialized skills and produce products more quickly. Other reasons companies outsource is if businesses need to act quickly on a market opportunity but don’t have the in-house talent to proceed.
Updates since COVID-19?
One component of nearshoring is the ability to travel shorter distances to visit business partners.
Of course, with COVID-19, governments have put many travelling restrictions into place. This means entrepreneurs have not been able to have face-to-face meetings with their partners. Especially at the start of any partnerships, in-person interaction is always preferable.
Nevertheless, many companies have been able to quickly adapt to the changes through online meetings, seminars and other online communications channels.
Link with CONNECTS
Companies looking into nearshoring as part of their business strategy can thus use CONNECTS to discover potential partners in all confidence. CONNECTS is a digital Business Matchmaking Platform that allows entrepreneurs to initiate trustworthy business opportunities worldwide.
Entrepreneurs wanting to find a specific type of service in a certain nearby region can do so using filters within the platform.
Furthermore, in a post-COVID-19 world where one cannot travel and meet people face-to-face anymore, CONNECTS allows entrepreneurs interested in nearshoring to find new businesses which are verified and trustworthy. Strong business relationships can only be developed through trusted networks. Chambers of Commerce vet and approve all their members.
This means each and every company on CONNECTS meets the high standards set by the Chambers. Nearshoring can thus be done in all confidence.
We provide entrepreneurs with the best of both worlds, the digital and the personal user experience. The platform is a unique, simple, and effective tool for online B2B matchmaking.
CONNECTS is free for members of Chambers of Commerce!
If you are not yet a member of a Chamber, you can sign up for a free trial for 90 days. This offer includes:
- The opportunity to connect with all our members
- Validation by a moderator
- Access to the companies and member search tool
- View and create business opportunities
- Online training on how to use the platform