Nearshore serving onshore: a winning strategy for businesses!

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Written by Numeryx , 26 November 2024

In a tense macro-economic context, where many companies must show a certain form of economic restraint and improve their performance, the use of subcontracting and outsourcing is becoming increasingly common. Outsourcing allows companies to offload time-consuming tasks, manage costs or benefit from specific skills.

Nevertheless, although associated with economic gains, outsourcing unfortunately still suffers from a negative image: questionable deliverable quality, missed delivery deadlines, shaky project management… All points that sometimes hold companies back from using this type of subcontracting.

However, some service providers manage to stand out by offering their clients a service built on a fair balance between nearshore and onshore. Combining these teams, located in distinct but often complementary geographical areas, allows them to exploit the advantages of each region while mitigating the drawbacks associated with geographical distance. Even so, for this integration to be truly effective, it is essential to put suitable strategies in place.

In this article, we break down the winning approach that combining onshore and nearshore can offer in IT service outsourcing for the benefit of businesses.

Before addressing integration strategies, it is worth distinguishing the 3 main formats that outsourcing can take: nearshore, offshore and onshore.

The difference between inshore, nearshore and offshore is fairly basic, as it comes down to a question of geographical position:

  • Nearshoring consists of using the services of partners from neighbouring countries;
  • Offshoring, for its part, turns rather to those located in distant countries;
  • Inshoring, meanwhile, relies on the services of providers based in the same country as the client company.

Unlike offshoring, nearshoring, often located in neighbouring or nearby countries, offers additional and often popular advantages: compatible time zones, similar cultural understanding… while offering attractive labour costs.

Onshore, by its format, offers the advantage of providing teams with a better command of local needs, smoother communication and greater proximity to clients.

So how can you benefit from combining these two models? What are the advantages of using providers offering this dual onshore/nearshore approach?

A precise definition of roles and responsibilities is essential to ensure getting the best of both worlds.

One of the winning strategies put forward by IT service providers is to orchestrate project management in the home country, onshore, and have the service carried out by the nearshore teams.

The onshore teams then focus on client relationship management and project supervision.

By acting as the interface with the client, they guarantee a high level of standards and responsiveness, while benefiting from the flexibility and economic advantages offered by nearshore. The client thus wins on all fronts.

As in any relationship, communication is the key to any successful collaboration. For nearshore and onshore teams, it is essential to maintain regular and transparent communication. This involves defining clear communication channels, using suitable collaborative tools and scheduling regular meetings to track project progress.

Since nearshore teams often operate in time zones close to those of the onshore teams, this facilitates real-time communication and reduces response times, a necessary lever to guarantee optimal flexibility and responsiveness.

Cultural differences can influence the way teams interact and work together.

Yet, very often when speaking of nearshore in most European countries, nearshore is understood as a continental reality, ranging from the provinces of one’s own country to Eastern Europe, up to the Maghreb for the southern part, with a limit of a 2-hour time difference and a maximum of 3-4 hours of travel time. Thus, cultural differences, while they do exist for some part, create very few constraints. On the contrary, the cultural proximity between onshore and nearshore teams very often considerably reduces misunderstandings and improves collaboration.

One of the reasons a company turns to outsourcing lies in the providers’ ability to quickly find experts, in numbers, to work on a project. Nearshore outsourcing makes it possible to quickly increase the size of a team to handle strong workload peaks on projects or to benefit from missing expertise.

For example, outsourcing a team in Tunisia gives access to a great diversity of IT skills and high-value engineers, a real advantage for companies.

3. Case study: transformation of a telecom operator’s information system with Numeryx’s support

In 2023, a major player in the telecommunications sector undertook a vast project to completely redefine its information system (IS) architecture. To carry out this complex transformation, the company chose to call on Numeryx. To do so, Numeryx deployed onshore teams for project steering as well as nearshore teams based in its premises in Tunis (Tunisia) for the implementation of the technical solutions.

Numeryx’s onshore teams therefore took charge of the overall steering of the project, providing the functional and technical direction of the entire process (project management). Their geographical proximity to the client enabled smooth communication and close collaboration with stakeholders, thus facilitating the management of the project’s specific requirements and constraints. This proximity was essential to ensure that the client’s strategic objectives were achieved efficiently and in line with expectations.

In parallel, Numeryx’s nearshore teams based in Tunisia played a key role in the analysis and consolidation of the audits carried out on the existing IS architecture. Their technical expertise, combined with an optimized cost structure, enabled them to consolidate and validate the target to be reached with great precision. Critical tasks such as the implementation of secure segmentation of the LPM networks and the migration of more than 300 servers were efficiently carried out by these teams. Their intervention enabled rigorous and consistent technical execution while maintaining a high level of quality and security in line with the client’s expectations.

Splitting the work between onshore and nearshore teams brought many advantages for the client. This approach made it possible to optimize costs while maintaining high quality of deliverables. The onshore teams’ proximity to the client fostered an in-depth understanding of needs and increased responsiveness to necessary adjustments. At the same time, the technical expertise of the nearshore teams in Tunisia ensured precise execution of technical tasks and operational flexibility. This hybrid collaboration thus made it possible to combine efficiency, cost control and quality, contributing to the success of the project and to client satisfaction.

Integrating nearshore and onshore teams can offer significant advantages, but it requires careful management to avoid potential pitfalls. By implementing effective communication strategies, managing cultural differences and defining clear processes, companies can leverage the strengths of each team to achieve their objectives. Case studies of successful hybrid projects show that, when well managed, these collaborations can not only overcome geographical challenges but also deliver exceptional results, thereby increasing companies’ competitiveness and efficiency in a globalized market.

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