6min read

Is nearshoring a solution for everyone? When is it advisable to opt for it?

#outsourcing IT #nearshoring #survey

Nearshoring is a popular solution in the IT field today. The outsourcing companies that offer the service of nearshoring focus on nearby countries. Such issues as the same time zone or similar culture are important here. At j-labs, we focus on German-speaking countries, among others. Out of curiosity about how particular organizations operate in this area, we decided to conduct a survey. We present the results in this article.

Despite evident demand for outsourcing in IT, many companies are not aware of the real possibilities this solution offers. However, external service providers can influence many important factors, such as:

  • cost optimization, 
  • improvement in the quality of the work performed, 
  • increased productivity.

Therefore, it is worth thinking through the advantages and risks behind nearshoring before deciding on a partner. 

Nearshoring vs offshoring

In the case of lack of experience in in-house recruitment or limited budget allocated for this purpose, outsourcing is the best solution. This service can be subdivided into offshoring characterized by hiring external organizations from distant countries, and nearshoring focusing on culturally close countries. At j-labs, we prefer an individual approach to each collaboration, therefore solutions dedicated to the German-speaking market are our specialty. 

Survey analysis:

The first step of our brief research was to prepare appropriate questions. We come up with two:

  1. What do you think about nearshoring – what is your experience in this area?
  2. What determines the choice of an IT partner in your case?

Our goal was to explore how people understand the concept of nearshoring. We were also interested in learning about the factors that guide people when choosing a partner for cooperation in IT. We were positively surprised by the results of the survey. 

Below we share a few interesting opinions of our respondents:

1. We buy parts where we get the best quality for the best price with decent delivery time and currently are not concerning ourselves where the part is made. However, for parts where the production is outsourced we use suppliers close by (same country). 

2. We use companies that are close by and that have a good local reputation and customer base.

  • Chief Operation Officer

Outsourcing IT is something I have done for about two years. What I mainly look when choosing a partner is timely responses, flexibility, and cost.

  • Medical Operations

1. I haven’t really had much experience with this so far. Of course, I have worked with freelancers within Germany and occasionally with foreign freelancers. Here I usually had problems with communication. 

2. That as much work as possible is taken off my shoulders and that the communication is right.

  • Full-stack developer 

Interestingly, many companies using outsourcing indicated the same factors that guide their choice of the service provider. Among the most frequently mentioned were:

  • cost optimization,
  • quality of services provided, 
  • cultural and communication compatibility,
  • transparency of cooperation.

The survey analysis allowed us to understand the preferences of those who decide to hire an external company. As it turned out, nearshoring is one of the most preferred options because of the similar values and better understanding of the cooperating parties. 

Nearshoring in organizations

The analysis of the survey showed us how important nearshoring service is – more and more companies in the IT area opt for it. However, there are some concerns that cause hesitation when choosing a partner. That is why mutual relations, understanding, and a clearly defined scope of services are so important.

Many companies specializing in nearshoring do not take the importance of personalization into account. Clients want to be sure that if they decide to cooperate, they will receive comprehensive and high-quality services. However, big corporations use rigidly defined forms of cooperation, which do not meet their clients’ needs.

At j-labs, we value an individual approach to services offered. That is why we always adjust our nearshoring service to our client’s expectations. We know how important it is to understand each other, which is why we communicate and answer all questions transparently. We work flexibly, based on a meticulously developed plan to satisfy the needs of those who trust us.

When we work with a German-speaking client, for example, we tailor our communications to the culture and customs of their country. Step by step, we prepare a strategy and then assign highly-qualified specialists to particular tasks. We work based on an agile methodology to immediately react to our partner’s expectations. We make sure the cooperation with our clients is lasting and valuable, which is confirmed by many long-term relationships.

Each B2B relationship is unique. Therefore, our main goal is a personalized offer and building mutual trust. We know that our services stand out in the IT industry because we do not use schematic solutions but create our own in collaboration with each client individually.

Summary

Although there are many forms of outsourcing, nearshoring seems optimal for many IT companies. It is a solution that allows using services of a culturally compatible organization. It allows for effective communication based on honesty and deep understanding.

Conducting a survey allowed us to understand the needs of our existing and future clients.

In j-labs, we employ a different approach to all companies we collaborate with and we provide tailored and high-quality services. We specialize in the DACHL market, and it is in this region that we most willingly establish cooperation.

It is worth remembering that choosing outsourcing services is a serious decision that requires preparation. It allows you to choose a company that shares your values and perfectly matches the offer to your expectations and actual needs.

If you are considering nearshoring in your company, contact us. Together, we can work out a solution that will help you achieve your goals.

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