Companies looking for savings but worried about the risks and cultural barriers involved in offshore outsourcing, whose business processes have a strong customer focus or regulations-driven reporting element, could benefit from nearshoring. Nearshoring involves outsourcing work to companies with the economic benefits of an offshore location, but a closer cultural, linguistic, and geographic fit with the user organisation.
low cost country sourcing
to match the very low labour costs that can be found in areas such as India and China. The trade-off between cost and the sophistication of the services available is clear. However, Marriott points out that costs in some of the main markets for offshore work is rising steadily. Because of the level of inward investment, the whole cost base is increasing, he says. That can make nearshore contracts more attractive, because the differential between nearshore and offshore today will be squeezed over the