Today, geographical and cultural barriers around the world are changing. Companies ranging in size from giants to the startup down the hall are routinely engaged in offshoring, not only for manufacturing, but for services as well. Lately though, companies have turned their attention to an alternative that is proving to be an attractive middle road between in housing and offshoring.
What exactly is “Nearshoring”?
Nearshoring means that an organization decides to transfer work to companies that are less expensive and geographically closer. Using this model allows businesses to move their operations to a closer, more cost-effective location, or transferring a portion of their labor to a foreign nation within close geographical proximity.
Nearshoring vs. Offshoring: What’s the difference?
Nearshoring means that the business has shifted work to a lower cost organization, but within its own region, like for instance to the Baltic region.
Offshoring involves moving work to an organization in another part of the world in order to reduce production costs. It’s become a global trend for a good many reasons. You stand to maintain or even increase productivity while simultaneously reducing costs.
Why should I Nearshore?
- Many operational expenses (like air travel and shipping expenses) can be reduced with nearshoring.
- Unlike offshoring, outsourcing to nations as close in proximity as Lithuania and Denmark allows a business to understand workflow expectations, while providing consumers with the service and experts they’ve come to expect in a global market.
- By reducing time differences and distance, nearshoring provides the opportunity to communicate and maintain cultural and ethical ties between geographically separated groups of employees. When barriers are reduced, productivity increases.
Ready to Get Started?
Want to know more and find out how to get started? Contact Baltic Assist, a company with offices in Sweden and Lithuania.
Baltic Assist was founded by Per Moller and Andzej Rynkevic. Per Moller has served as the Managing Partner of EY both in the Baltics and Denmark. Andzej Rynkevic has previously worked for Barclays Technology Centre in Lithuania.