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Nearshoring verses Offshoring - A Simple Comparison

Posted By SNSimmons On April 2, 2009 @ 1:56 pm In Nearshore Outsourcing To Mexico | 1 Comment

Author: Shawn-Noël Simmons, Vangtel Marketing Manager

In today’s increasingly volatile and hazard filled business world selecting solutions that meet your business model and enhance value to your bottom line are getting harder to find. The known processes of decision making have grown overloaded with risk and well worn models cannot provide the direction many business executives are seeking. With a need to reduce costs always present, most executives have looked to offshoring as a solution that is, if not completely seasoned, as close to being a reliable cost saving resource as could be implemented. It has become increasing clear that in today’s world offshoring may not provide the holy grail of cost reduction and quality as it has in the past.

With scandals appearing across the subcontinent where outsourcing became famous, and many companies finding ease of communication, quality and goals falling short of expectations, offshoring today could be said to have a bit of a black eye to its reputation. In Europe many firms are seeking closer to home options by bringing the old iron curtain counties into focus for an alternative to outsourcing further afield. While in the United States, Latin America is becoming an increasingly viable alternative to China and the Philippines.

Why is offshoring so problematic today and nearshoring becoming so attractive? Lack of true cost savings, low customer satisfaction, and difficulties in managing those processes outsourced are the increasing cries of management. What was once considered the cost of doing business offshore: travel time and expense, lack of cohesive communication, lowered customer satisfaction, missed deadlines, or low quality task execution, is no longer being accepted when compared to newer more compatiable outsourcing solutions such as nearshoring.


The Following Chart Lists A Few Of The Differences Between Nearshoring Benefits And Offshoring Challenges:

Comparision Chart

Additional benefits to nearshoring will be based on individual businesses needs and goals.


Vangtel, Mexico’s premier nearshore provider, has developed a nearshore model to benefit U.S. businesses even further by offering a Shelter solution. Under Vangtel’s Shelter program, organizations are provided with quality back office processes, including facilities and build-to-suit work areas, allowing them to focus on their core reasons for outsourcing. Vangtel takes care of the hiring, based on all requirements and specifications, of highly qualified employees often drawn from the surrounding universities. Under the Shelter program comprehensive human resource administration along with accounting, purchasing, procurement, and additional supportive back office services are provided. This frees a business to manage their core competencies while Vangtel does the rest.

Even if a company has no experience operating outside the United States, Vangtel’s Shelter model covers any regulations or legal requirements by dealing with the Mexican government directly. Thus a U.S. business is dealing directly with another U.S. business – there is literally no exposure to Mexico’s laws or court system. Vangtel provides a means to focus on value added tasks not value reducing paperwork and administration.

When compared to traditional offshore and nearshore options, Vangtel’s Nearshore Shelter model delivers all the benefits associated with outsourcing without all the ancillary costs, management issues, and delays when operating in another country. In today’s constantly changing economic world, Vangtel creates opportunities that traditional nearshoring and offshoring methodologies just cannot supply. By increasing value to business owners, who can focus on core competencies while minimizing administrative tasks and facilities management, Vangtel’s Nearshore Shelter solution reduces the financial profile required and increases success in quality production that initially made outsourcing so attractive.

Visit our website,[1] www.vangtel.com, for more in depth information on Nearshore Shelter services by Vangtel.

Interested in scheduling an informational webinar on Vangtel’s Shelter model? Please email the author at: ssimmons@offshoregroup.com


Article printed from Vangtel Blog: http://blog.vangtel.com

URL to article: http://blog.vangtel.com/2009/04/02/nearshoring-verses-offshoring-a-simple-comparison/

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[1] www.vangtel.com: http://www.vangtel.com/Note.html

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