What is nearshoring and how does it work?

Nearshoring, offshoring and remote sourcing. 
What does it really mean and how does it work? 
Here are some things to think about if you want to try nearshoring. 

There are many different terms when it comes to outsourcing people or whole departments at a company. The reasons for using different types of sourcing outside the company are many but often the reason is that the company lacks niche expertise in an area or that they are looking for qualified personnel at a lower cost.  

Offshoring, nearshoring or remote sourcing 

When you start to talk about outsorcing it is important to know the difference between the different terms and to know what you really are looking for. Offshoring, nearshoring, and remote sourcing are all terms used to describe the outsourcing of business processes or tasks to a third-party service provider. But there are some important differences.  

Offshoring refers to outsourcing business processes or tasks to a third-party service provider located in a different country, often with significantly lower labor costs. Often a long distance from the country where the company is operating. Offshoring can offer cost savings, but it may involve greater communication and cultural barriers compared to nearshoring. 

Nearshoring refers to outsourcing business processes or tasks to a third-party service provider located in a nearby country or region, often with lower labor costs than the home country. Nearshoring can offer cost savings but is often not associated with the same communication and cultural barriers that are associated with offshoring. 

Remote sourcing is a broader term that can refer to outsourcing business processes or tasks to a third-party service provider located anywhere in the world. Remote sourcing can include both offshoring and nearshoring, as well as working with service providers in the same country as the business. 

Looking for skilled professionals 

During the last couple of years, the interest for nearshoring and remote sourcing has increased quite a lot in the Nordics. The reasons are several but the need for skills is one of the most important. Many areas lack niche expertise and companies are interested in having a larger talent pool to choose from. The impact of the pandemic when remote work became more popular has also made many companies more open to having professionals working for them at different locations. 

Remote sourcing through Ework 

To meet this need Ework started a Remote Sourcing Center in Poland.  

“With the Remote Sourcing Center, we can complement our offering of deeper and broader talent pools. It also increases our possibilities to offer top talent in niche segments and provides our clients with greater flexibility and more options.” says Malgorzata Migdal responsible for Remote Sourcing Center. 

The reason for locating the center in Poland is the availability to many talents, there and in the neighboring countries. It enables Ework to find nearshore resources with local expertise primarily from Poland, Romania, Hungary, and Latvia. But Ework can find resources from the entire European Union (except from Germany and France), UK and Ukraine.  For clients looking for talents outside their country the big talent pool also means that they often can find qualified professionals at a lower cost than in Scandinavia.  

“We have a strong network outside of the Nordic region. 61,000 of our 100,000 registered profiles on Verama are located outside of Scandinavia. If the client has a role that is 100% remote and the position allows candidates from outside the Nordic region, we are happy to assist with our Remote Sourcing Center to find qualified labor in other areas.” says Malgorzata Migdal. 

Many consultants want remote assignments 

During the last years Ework has also seen an increase in professionals that are looking for assignments that are remote. On Eworks digital plattform Verama assignments that are 100 percent remote receive 30 percent more applications than assignments that are hybrid or at an office. 

“There are qualified profiles available at lower costs, as the hourly rate for the best professionals is generally lower outside of Scandinavia. We find that fully remote tasks are in high demand among our professionals.” 

Five reasons why nearshoring and hiring remote talent is the future 

  1. It gives companies the possibility to find top talents, not limiting themselves to a particular country or region.
  2. By searching for candidates in many geographies the selection increases by 20-30 times for most roles. 
  3. Different studies show that between 50 and 90 percent of IT specialists prefer remote work and that remote work builds  diverse teams that are more innovative and productive. 
  4. You work with the best specialists while reducing costs. 
  5. It decreases the time to hire 

Want to know how it works? Read more about Ework Remote Sourcing Center!