So, you’ve decided you don’t want to spend too much money, time, and nerve cells on the recruiting process. That’s understandable. Luckily, you can turn to one of the common approaches to outsourcing: nearshoring, offshoring, and onshoring. While they all represent the same notion of paying a third party to do some work for your company, understanding the differences between them is critical.
Offshoring is known as the most budget-cutting approach to outsourcing. Companies offshore their processes to outsourcing vendors in distant countries, usually India (link to India page), China (link to China page), or the Philippines (link to Southeast Asia page), where the talent pools are complete, and the expenses are low. The time zone difference here plays a significant role in keeping your business working around the clock.
Nearshoring means outsourcing to a nearby country, preferably a neighboring one or that’s at least on the same continent. This helps to travel and hold face-to-face meetings more frequently, at a lower cost. You can also get more control over your business if you often visit and keep the team spirit high by inviting the development team to your HQ. Cultural compatibility reduces any chances of misunderstanding and facilitates work coordination.
Onshoring is basically outsourcing to another city in your country. By using this approach, companies don’t face the risks associated with offshoring like cultural differences or foreign taxing policies, not to mention they invest in their country’s economy.
Resilience is Key
A good logistics partner helps customers create resilience. It should be an extension of a customer’s formal logistics team or a replacement of an in-house logistics team for those customers who prefer to outsource the totality of their transportation cycle. You should be able to sleep at night knowing your goods are getting to their intended destination with no snags.
At first, it may seem like the difference between offshoring, nearshoring, and onshoring is only the distance. But in our ever-changing world, territorial proximity shouldn’t be your key factor when deciding which of these outsourcing approaches to consider. First, you must set your priorities straight and define what you’re trying to achieve by adding new blood to your team. What do you expect? Is it the lowest cost, the least fuss, or a balance of everything?
We want to see our customers succeed. Their success is our success. Our ultimate goal is to preserve the integrity of our customer’s supply chain by ensuring safe and total transportation offerings to the final destination while handling all the intricacies that occur in the process, regardless of sourcing location. We strive for both innovation and excellence, as do our customers; it’s just how we do business.
Only when you have a clear vision of the responsibilities, the duties, and the required skills of your future employees can you decide which approach to go for. And if you still have questions related to outsourcing, don’t hesitate to contact Precision Global Logistics.
