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what is nearshore guide

What is Nearshore Outsourcing, and How Does It Work?

If you are looking for cost-effective and specialized talent to help your business get to the next level, your business may benefit from nearshore outsourcing. This is a concept that refers to hiring international third-party service providers that are still within the proximity and time zones of your country. These roles work to provide specific business functions. 


Nearshore outsourcing is relevant for all industries because it offers access to a larger pool of specific talent. These services are convenient to your time zone and have cultural similarities to better serve your customers. They are also cost-efficient and offer flexibility and scalability.


This article will address the following questions:  

  • “What is nearshore outsourcing?”
  • What does nearshore mean?”
  • “What is nearshore and how can it work for my business?”


 The article will cover nearsourcing benefits and challenges, and what to consider when choosing a partner. It will review comparisons of similar services and provide case studies of successful partnerships. Lastly, rising trends in the industry will be addressed. 

Nearshore Outsourcing Benefits

Two questions business owners should consider are, “What does nearshore mean?” and What is nearshore and what are its benefits?”

These questions are important because nearshore outsourcing supports the needs of your business and its industry. Call centers like this generate leads, provide customer service, and collect valuable customer feedback. They are also cost-efficient and make communication smoother amongst your team and customers.

Many outsourcing services provide specialties that you need but cannot afford in your country due to expense. Nearshore outsourcing helps you to find the quality of expertise you need.


Other advantages include faster project delivery times and scaling your business quickly and efficiently. It can aid businesses in finding talent, resources, tools, and technology. As you think about the question, “What is nearshore outsourcing, and can it work for my business?” remember these benefits. It can be a good investment for business growth. 

Outsourcing: Nearshore vs. Offshore Options

When a business owner addresses the question, “What is nearshoring and will it work for me?” there are options to consider. One of these options is offshore outsourcing. 

nearshore bpo explained

Offshore outsourcing is similar to nearsourcing in that it hires professionals that reside outside of your country. However, these partners are typically in a different time zone than yours. The benefits of offshoring include cost reduction and provide access to specialized areas of expertise. 


The downside is that offshoring provides challenges that nearsourcing may not. These can include delays in communication and project delivery times because of time zone differences. In addition, it may be time-consuming to learn the differences in regulatory compliance in the offshore country. If offshore outsourcing seems like the better option, it is essential to have the strategies and management in place to set it up successfully. 

Considerations When Choosing a Nearshore Partner

It is beneficial to take your time when choosing a nearshore outsourcing partner. When reviewing the ask of, “What is nearshoring and how will it make my business more successful?” review the following recommendations. 


As previously discussed, be mindful of the time zones and proximity of your nearshore partners. This is a key component for successful collaboration and faster turnaround times. Additionally, make sure your nearshoring partner employs agents who speak English fluently and understand customers and manners of people in the United States.   


Be sure to review any legal contracts, assess risk, and develop mitigation strategies. These details are necessary to make a decision that works best for your organization. Keep these ideas in mind as you examine your question, “what is nearshore outsourcing?” to find the best partner.


Case Studies of Successful Nearshore Outsourcing Partnerships 

There are widely known companies that have had success with their nearshore partners. These companies evaluated the question, “What is nearshore outsourcing?” and found ways to make it a successful aspect of their business growth. 


AT&T established some of its call center partners in Mexico, which neighbored its home office in the United States. The partnership allowed AT&T to offer services in both Mexico and the U.S. They hired nearshore partners that understood the language and cultural barriers in Mexico, which made for better customer satisfaction. In addition, it permitted easier communication amongst the teams in each country because they shared time zones. Thus, they were able to provide customers with products and solutions that worked best for them and increased the growth of the business. 


Another successful nearshoring partnership was used at McKinsey & Company. The company  is one of the largest consultant firms in the world, with its global headquarters in the United States. The company set up a knowledge center in Costa Rica because they needed to find data and conduct related research and data analysis. Their nearshore center allowed McKinsey & Company to discover and utilize the talent and create new products and solutions to better serve its clients. With this, they were able to grow and serve their clients worldwide and grow the business further.

Future Trends and Potential Challenges

Nearshore outsourcing needs are rising. As growth occurs in the areas of digital technology, data security and compliance, remote work, and niche specialization, nearsourcing can be a smart decision. 


With these trends come challenges. There are talent shortages that increase demand – and cost – for businesses to receive the expertise they need. In addition, every country has its own economy. This can alter the cost-effectiveness of a nearshoring partnership over time. 


Another potential barrier is geopolitics. This can increase the risk of maintaining long-term partnerships. Lastly, there are complexities for data privacy and legal compliance that require navigation to ensure the protection of your clients.

Find Your Nearshore BPO Call Center Partner Today 

There is a lot to consider to find the best outsourcing option as you scale your business. If you have asked the question, “What is nearshore outsourcing?” and are ready to take the next step, look into Confie BPO. The company offers call outsources services in Tijuana, Mexico that will be a good fit for your needs. Contact us by sending an email to, calling us at 800-684-2276 or reaching out online.