Choosing your outsourcing service provider is like choosing between the red and blue pill. Only you are not stuck in a Matrix. You are a business owner who has the whole picture and is conscious of the entire business landscape.
Only this time, you need to choose a third-party service provider as your partner with whom you can entrust your goals for your company.
Two options are presented to you. Nearshore outsourcing and offshore outsourcing. Which one would you choose? To answer that, read through our piece and learn the processes involved in these two ways of outsourcing.
One offers low-cost, 24/7 access to services. Meanwhile, the other will provide you with a stronger client relationship. Let us compare USA-based outsourcing vs. offshore outsourcing.
What is Domestic vs. Offshore BPO Outsourcing
The idea of outsourcing would often be more connected to the idea of remote employers who handle your business processes. But the employees need not internally work in your company’s physical headquarters.
Another entity or another company will also manage the outsourced staff. Thus, the terms outsourcing and third-party providers come in. US-based companies often outsource call centers. It was to satisfy the need of the call center customer support to answer calls around the clock. It also provides cost-reduction ideas for US firms, with tasks that range from hiring and managing in-house caller agents.
While remote call centers and BPOs can save a business from costly in-house resources, it became a major backlash when it came to sustaining strong partnerships and getting the agents familiar with domestic or US-based laws and protocols.
Although BPO and call center agents have excellent skills and highly-trained backgrounds, getting around with US state policies can be challenging. This led to the rise of nearshore or domestic outsourcing, where a company based in the USA will hire third-party service providers from US-based call centers and BPOs.
How to Choose from Nearshore vs. Offshore Outsourcing
Now, companies take advantage of having multiple outsourcing locations. This strategically enhances how a company finds and manages its employees. While choosing which type of outsourcing can be challenging, other judicious business owners will harness the potential of having more than one outsourcing game plan. It emancipated them from the worry of choosing Domestic vs. offshore BPO.
What are the Nearshore BPO Advantages?
Scaling the speed of how businesses generate results that increase profit resounds a nearshore outsourcing advantage. The advantage of having real-time communication is unparalleled.
This strategic practice involves partnering with service providers located in neighboring or nearby countries to manage various non-core business functions. The advantages of nearshore BPO are manifold.
Let us delve into the remarkable benefits it brings to the table.
What are Nearshore Outsourcing Advantages
- Time zone synchronicity
- Similar economic and regulatory requirements
- Whip-smart solutions
- English Language proficiency
What are Offshore Outsourcing Advantages
- Enhanced and wider reached Markets
- Flexible Costs and Benefits
- Lower labor costs and less in-house operational cost
- Round-the-clock availability of agents
The Quicksands on Nearshore Us-Based and Offshore Outsourcing
Now, learn the factors that influence the setbacks of outsourcing with US-based BPOs first. Next are the drawbacks that are integrated into outsourcing from overseas locations.
The Cons to Outsourcing to US-based Firms
- The downside of affinity- is the lack of diversity.
- Exclusivity that hampers productivity and siloing essential data.
- Higher rates with higher labor costs in the US
The Cons of Outsourcing to Overseas Companies
- Prone to data insecurity
- Exchange rates dents from foreign currencies
- Limited institutional knowledge
Outsourcing Pros & Cons Showdown: Nearshore vs. Offshoring
Intelligent leaders know that one strategy will have both the pros and the cons.
So, do you want to see intelligent moves made in your firm? Then, you will need the things to be discussed below.
Ultimately, a wise business will take a deep dive into their options’ hows and whats.
1- Time Zone Synchronicity vs. 24/7 Availability
Closeness. When you think of someone you need to be close to, it gives you so much peace, and this type of feeling is what the rule of proximity gives. This is the inherent advantage of nearshore BPOs.
Their time zone is synchronized with you. So imagine having to call one of your business partners when you take a break or have your lunch. In the event you need to go home, you can still have a quick rendezvous with the client or the agent or even while driving your car stuck in rush hour traffic! That feels so efficient.
You do not have to adjust your clock just to match the time of an employee working for you in another country. Vice versa!
2- Similar Economic and Regulatory Environment vs. Flexible Policies
Another resounding advantage of a domestic or same-location outsourcing partner is that you and they work under the same jurisdictions.
Meaning that you and their firm are following the same set of policies. You follow the same authorization – same legal bounds, and so forth. This gives back to the common problem with offshore BPO, which will be discussed in detail later.
Nearshore BPO provides the advantage of partnering with service providers operating within similar or familiar regulatory frameworks.
Flipping on the other side of the coin now, you will see that offshore BPO may add more challenges with varying regulations. What else?
Offshore, however, may be fine when it comes to regulations. With varying degrees and a set of policies, you can make more adjustments to the contract. An overseas contractor or agent can work on flexible employee-employer grounds.
3- US Native Speakers vs. Multilingual Agents
A seamless dialogue between two business entities is banked on what was mentioned above with in-sync schedules and another factor with equal importance.
That second factor is the language spoken. There is still a huge advantage with US-based call centers and BPO with native speakers. Also, when you are in need of bilingual agents, there is only one place to find the best multilingual-English pro agents in US-based BPOs.
An unhampered conversation exchange between two speakers and receivers is a cornerstone for any successful business transaction!
4- Whip-smart Solution vs. Low Rates Offerings
Nearshore BPO answered the call of some business owners’ needs to formulate fast solutions. A domestic third-party service provider can cater to that by being attuned to the US-based business. The owners can make more informed decisions promptly.
If you want the service provider to adjust the strategies and mold them to your current needs, those in your local BPO can do that for you.
On the one hand, your business may need low-cost support at the moment. The right treatment for that impending need is with overseas BPO outsourcing.
When narrowing the cost funnel, the upper hand would still belong to offshore BPO. If a bulging RPOI is what you are in need of the most, voila! – A BPO outsourced offshore is your best bet.
5- A Wider Pool of Talent vs. Limited Talent Option
By utilizing offshore outsourcing, you can access a broader range of knowledgeable individuals with various viewpoints and areas of experience.
How about nearshore outsourcing? The catch would be the apparent brevity of choices. That can be a boon or bane. Nearshore can lead you to an accurate selection of agents with unflawed communication and specific skills.
However, limited choices may force you to settle for talent that may not be ideal for your company’s requirements. Quality and cultural quirks could be compromised, making it more difficult to collaborate effectively and produce high-quality solutions.
6- Affinity to Single Culture vs. Diversity
Offshore outsourcing offers exposure to diverse cultures. Can you picture what this entails for your business? This promotes inclusivity that directly impacts productivity. It sets up an environment in your company where new perspectives are welcome.
That will give birth to new ideas and solutions, highlighting problem-solving ingenuity.
However, a nearshore affinity may lead to a tunnel-vision perspective!
A single lens used to work out a problem is bound to not work. Stifling creativity and limiting global customer engagement would stifle your company and client growth.
The Winning Decision Yielding to BPO Synergy
Having your time to probe and touch down the bases of every strategy of what makes the outsourcing option more viable is the ultimate goal of outsourcing. If you, as the business leader, the manager, or the CEO, realize the potential of making nearshore and offshore outsourced services work hand in hand, then you have already won!