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Near shoring: A facet of the BPO Industry

By: Ivana Lewis


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Near shoring is an important facet of the BPO industry, which involves the business organizations outsourcing their work to the nearby located outsourcing companies. Previously, outsourcing was considered only as an offshore affair since the business organizations would outsource their business projects to the industries located in other continents, or rather overseas. But with the times changing, the BPO industry has come up with near shore facilities. Business enterprises are hiring the services of call center agencies that are situated geographically closer to them. Near shore outsourcing has become very popular these days due to several reasons as has been discussed further in this article.

Firstly, the cost of commutation involved in these services is less since the organization is closely located to the outsourcing company. This results in low operational costs of the call center company and therefore it offers the services at a relatively cheaper expense. This is highly beneficial for the business organizations as they get to save on their expense purchasing effective BPO services. Secondly, near shore outsourcing gives the businesses a greater security as they can keep a constant check on whether their operations are being properly executed. The clients get the facility of communicating or meeting with their outsource partners whenever they want to.

With BPO companies emerging in countries like Mexico and Canada, the businesses in the western countries are opting for near shore outsourcing. The call center is continuously thriving in the western countries while earlier only the developing nations were the only outsourcing destinations to be looked for. The business organizations in the United States are outsourcing their business needs to these countries nowadays. The closer proximity between the organizations and the call center agencies have enabled them to build up better communication, project management and working relationships . Near shore partners have proved to offer better quality services to their clients and that is why, they are so much in demand. Near shore outsourcing services cover up almost all kinds of business needs from various industrial sectors such as, data entry, health care, engineering, finance, software development, research, creativity, photo editing, web-analytics and so on.

Besides, similar cultural affinity is another reason for which the businesses are resorting to near shore outsourcing services. It becomes easier for both the outsourcer and the outsourcing partner to jell well with each other when they come from the same cultural background. Good communication and coordination between both the parties is essential for smooth execution of the services. Cultural diversity often gives rise to several problems that might prevent the BPO companies from delivering their services within time. To avoid these risks, more and more businesses are following the trend of near shore outsourcing.

Near shore outsourcing allows the outsourcer to visit the outsourcing company frequently. Businesses are, thus, able to keep a check on the functions of their outsourcing partner. This gives them a feeling of security and stability since they can be sure about the services delivered to them. This form of outsourcing is expected to achieve a great height in the coming years.

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