Outsourcing or Nearshoring?

In the last few years, more and more UK and Western European businesses talk about nearshoring rather than offshoring their operations to a remote location. But why nearshoring and outsourcing? What is different and what is common between them? These are some of the points we will outline below.
To make it simple, here at ENCORE we’d like to think outsourcing and nearshoring are essentially the same thing. In both cases we have the transfer of services and tasks to an external team, located at a foreign country. In both cases the purpose behind it is similar. From saving on labour costs and office space to utilizing the intellect and experience of global teams to enhance your products or services.

What is the difference?

Now, let us talk about what makes outsourcing and nearshoring different, and the first thing is the distance. While outsourcing is historically related to countries in Asia or Latin America, nearshoring is the nearby alternative found in Eastern European countries. These territories offer high numbers of professionals in various fields, a similar time zone, and lower costs.

But what is nearshoring really?

To put it simply, it is the transfer of tasks, processes or roles to a nearby, low-cost country. Nearshoring is a trend that is gathering pace as companies recognise the many benefits that this alternative sourcing model provides, particularly in the IT / Software Development and Business Process Outsourcing (BPO) areas of their business. It helps companies reduce salary costs by at least 30% thus allowing them to be more flexible in their business development strategies.

Is this all?

In addition to improving your overall competitiveness by driving down cost, nearshoring can be a method of enhancing your services with around the clock and multi-lingual support, while also retaining direct management control of your nearshored activities if you wish. Furthermore, nearshoring does not have to mean outsourcing at all; it can just be the undertaking of a service in a less expensive location than the UK for example, or expansion at another location without the need of sourcing talent, renting an office, or creating a local branch of your company.

Where is Nearshore for ENCORE?

Located within a premier location in Central Sofia, we are just 2.5 hours from the UK and only 20 minutes from Sofia airport. Bulgaria offers many attractions for nearshoring customers. The workforce is very well educated with 40+ universities, 40+ colleges and 3000+ schools.

Furthermore, Bulgarians rank second in the world in terms of IQ tests (Mensa) and employees are generally multilingual, highly flexible, and loyal. In addition, Bulgaria is a full EU member and has deployed a robust communications infrastructure so vital for the provision of efficient nearshoring services.

What can be Nearshored?

Most desk-based services have the potential to be relocated to a nearshore European location. A few examples of what can be done include:

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