When it comes to nearshore business process outsourcing (BPO), the options can be overwhelming. Which services should you outsource? And should you go with onshore, nearshore, or offshore outsourcing?
This article explains what the different business process outsourcing models are and why nearshore is the best option for many business owners.
What are the Pros of Nearshore BPO?
As with most business process outsourcing, companies can find many pros and cons to nearshore BPO. Nearshore BPO describes outsourcing to a company in a nearby country – or one that shares a border. In our opinion, the pros outweigh the cons. Let’s take a look.
Pros to Nearshore BPO
1. Cost: Companies can realize a major cost savings by choosing nearshore. With the minimum wage skyrocketing and people unwilling to work in the U.S., businesses can save money by choosing a nearshore BPO.
2. Proximity: If you have to outsource some of your tasks, then doing it in a location that is easily and quickly reached is superior to traveling through several time zones. Your BPO will also be in a time zone that overlaps yours.
3. Shared culture: A nearshore BPO likely has employees who are very familiar with the neighboring culture – and many have probably attended school and lived here.
4. No language barrier: Customers get frustrated when they call you and the person who answers the phone doesn’t seem to understand their problem due to a language barrier. With nearshore BPO, you’ll get agents who are completely fluent in English.
What are the Pros of Onshore Business Process Outsourcing?
Onshore business process outsourcing (BPO), also known as domestic outsourcing, happens when a business hires another company within the same country to perform BPO services. In the U.S., onshore outsourcing also includes territories such as Puerto Rico and the U.S. Virgin Islands — essentially, anywhere federal U.S. law applies.
Pros to Onshore BPO
1. Proximity: Your BPO shares a country, meaning that, at its longest, you’ll only have to travel across one country to reach your BPO company, if necessary.
2. Shared culture and language: An onshore BPO is staffed with people who may be native English speakers and who have grown up in America.
What are the Pros to Offshore BPO?
An offshore BPO is located in a different part of the world – most likely India or China. There are definitely some pros to offshore BPO, mainly in cost.
Pros to Offshore BPO
1. Cost: Offshore BPO is the cheapest option for companies that need to outsource some of their business functions.
The Differences between Nearshore, Onshore and Offshore BPO
You probably noticed that as we went down the list, the number of pros also went down. That’s because with onshore BPO, you get all the pros of nearshore without the cost advantage and with offshore, you get all the pros of saving money, but none of the proximity, language and culture benefits.
Good communication is vital for any successful business. When your company and your BPO can communicate at the same level, there’s less chance for mistakes and inefficiencies.
In today’s environment of employee unrest in the U.S., choosing an onshore BPO won’t necessarily get you employees who are native English speakers and who have lived in the American culture their entire lives. Onshore BPO is the most expensive option of the three, but its only true benefits – proximity, language and culture – are very comparable to a nearshore call center operation.
Save Money and Stress with Nearshore Business Process Outsourcing
Local business owners are often tempted by the low price of using an offshore BPO company, but the price is only part of the story. Likewise, an onshore company might be tempting for proximity and language/culture reasons. But what if you could get the affordability, plus proximity and shared culture/language? With nearshore BPO, businesses can save money, plus reap the benefits of working with a BPO that offers commonality in language and culture.
At Confie Business Process Outsourcing, we work with local business owners around the U.S. to provide superior BPO services at an affordable price. To learn more, get in touch with us or call us at 800-684-2BPO (2276).