When discussing Outsourcing, the terms Nearshore and Offshore are often used. But in order to understand this, it is important to first define what Outsourcing is. This term can be translated as subcontracting. In other words, we can say that it is the process by which a company hires another external company to take over certain production or commercialization activities.
Knowing the definition of Outsourcing, it can be said that Nearshore is a way of doing Outsourcing with countries that are geographically close, or that have some characteristic in common. Offshore corresponds to factors that are more geographically distant and that in most cases do not have characteristics similar to the organizations with which they work.
Below, the main differences between Nearshore and Offshore are highlighted:
In this case, Nearshore has the advantage because it has the facility that all teams can work in real time, making communication easier and more fluid. The AssureSoft team is aligned with your team and is available to talk all day by phone, instant messaging or video conferencing. In the Offshore case, the time difference can be up to 12 hours, hindering the smooth progress of the projects.
Having cultural similarity is the key to any commercial operation. This refers to a more effective and frustration-free work. In the Offshore case, due to the long distance, the effect of different cultures implies innumerable challenges with communication, project management, planning and others.
Countries will always have culture and lifestyle differences; however, Latin America shares a border with North America, which is why there are several cultural features in common. In Bolivia, the culture includes expressing one’s self in a respectful way. Many customs, education, ethics and values are very similar to those of North America. Punctuality is another important aspect that should not be overlooked when outsourcing, for example, in AssureSoft, meetings with clients start minutes before the agreed time.
In general, in Latin America people are friendly, enthusiastic and passionate about what they do, facilitating relationships and the progress of projects.
The reduction of costs is one of the main reasons for companies to do Outsourcing. The salaries of the employees who work in the Nearshore companies are lower than the salaries in the United States. Also, travel costs are low, due to the short geographical distance. One of the characteristics of the Outsourcing boom in Latin America is the low cost and quality of the software developed.
Good communication is a challenge when working remotely. Language barriers or cultural differences can cause a loss of time in the development of the project, as well as a mismatch between expectations and results.
In the case of Bolivia, having a time zone similar to the United States allows working in real time by distance, and face-to-face communication is facilitated since traveling is much easier and less expensive. In the case of Offshore this can be difficult.
Another important aspect of communication in Outsourcing is English. Working with different teams and dealing with different accents, intonations and cultural differences can affect the understanding of the words themselves, and also subtitles of their meanings and underlying intentions. At AssureSoft we have discounts at different institutes and full-time English teachers at the office to help the staff to master the language.
If you want to know more about our Nearshore offerings, please write to us at firstname.lastname@example.org