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Near shore Outsourcing is the way of business operation performed by the nearby or neighboring countries to provide solutions for their clients. This had a great advantage in reduced cost and reduced risk compared to the projects given to the companies in distant foreign countries (offshore outsourcing). The developed countries prefer to provide their outsourcing projects to the organizations in neighboring countries. For Example, the US clients offer their business process outsourcing and other outsourcing projects to the neighboring countries like Mexico and Canada.
Benefits of outsourcing Near shore:
The near shore outsourcing has lot of benefits compared to the offshore outsourcing. The Outsourcing solutions provided by the near countries to their clients will not have much difference in their time zones and thus they can provide business process outsourcing services in the same time zone as their customers do. It helps to avoid problems evolve due to language, culture, legal affairs, infrastructure and technology. They desire to go for near shoring as the cost effective structures are available nearby than depending on offshore countries for their works done.
Limitations of Outsourcing:
In addition to the benefits, there are few limitations to near shore outsourcing, it’s not always the situation where the near shore outsourcing is profitable, when the economical conditions of the neighboring countries are same. For ex: American’s providing projects to Canada pay the same as they do for American workers which wont help them to save money instead add expenses for travel, legal affairs, etc. but the only gain is to open up trade between two countries. Again it leads to fewer job opportunities for American workers and thus complains & criticizes their own Government. Further, it is difficult to maintain security and confidentiality in business transactions as it is offered to outside service provider.
Still, the organizations desire to near shore outsourcing as these limitations are concealed by the huge advantages and therefore many countries have preference to near shore Outsourcing and few examples are mentioned below.
Japan prefers China for near shoring for their projects.
Mexico and Canada provides near shoring solutions and services to American clients.
India provides business process outsourcing solutions and customer services to their neighboring countries like Singapore, Malaysia and Middle East countries.
UK collides with its neighbor country partner Ireland for its outsourcing operations.
Thus, it becomes less expensive, easier to travel and communicate for the clients as well, the near shore outsourcing partners can develop their economical value, increase their standard of life, and employment opportunities will immigrate. Near shore outsourcing creates best cooperation and interaction with their partner countries for the Business projects and services to provide with quality.