How to Choose the Best Partner for a Nearshoring Operation
The nearshoring operation trend has been growing. That is the use of remote nearshore teams with a proximity in terms of time zone and culture.
Over the years, digital transformation and globalization have created a phenomenon that has only deepened with the explosion of remote work. There has been a movement towards the implementation of establishing a nearshoring operation in a foreign country. For companies that are in the United States, Mexico is the logical and most common nearshore choice.
Although Mexico has a different culture and language, it is the nearshore location that is most familiar with US business practices and culture. Establishing a nearshoring operation there enables companies to access a favorable wage structure and economic conditions that expand their bottom lines.
Putting together effective teams in the United States, those that physically work in the same space can be a difficult exercise. They are often challenging to build due to the need to access an available labor market where finding enough workers is a toilsome proposition. In addition, many companies have to contend with a high rate of turnover that often affects the types of activities that correspond with a nearshore location.
Offshore and geographically distant locations, on the other hand, which provide back office services from culturally and geographically very distant points, result in a need for more understanding between the parties, as well as in continuity of workflow.
On the other hand, however, nearshoring location in Mexico operates in a more positive environment. In Mexico, a team can be structured at a distance, and in terms of location and culture, it is quite accessible. In addition, workers at a nearshore facility labor in a corollary time zone to businesses in the United States and have a deep cultural understanding of the people in the home office.
So far and so close
Thus, a team in a nearshore operation works synergistically. In this circumstance, feedback flows faster, control over back office activities is increased, and the results, as a consequence of all of the above, tend to be better.
On the other hand, if a face-to-face meeting is needed to reinforce a strategy or correct a deviation, travel time to a nearshore operation in Mexico is reasonable and transit time is shortened.
However, when choosing a nearshoring model, it is necessary to know that there are some best practices to keep in mind for this type of partnership to succeed.
The difference between a nearshore operation partner and a service provider
1.- The first issue to consider is that it is not about choosing a provider.
The issue is finding a true nearshore partner that is aligned with the purpose of your company and has the following:
- A proactive approach
- An ability to detect points of pain and opportunity.
- The ability to demonstrate experience in projects similar characteristics to your needs.
- A size commensurate with your company’s requirements.
2.- From the beginning of the project, the scope and expectations must be perfectly established
This is another element that differentiates a provider from a partner:
- A nearshore partner will do what they are instructed to do (or, at least, what they can interpret).
- A true partner will actively participate in the construction of solutions that fit your company’s needs.
3.- Communication is a crucial point:
- It is important that all parties know the objectives and the impact of the project on the organization.
- Meetings must be regular and with a clear agenda to get the most out of them.
- Those responsible for the project and workflow are available when necessary.
4.- Transparency is essential
Collaboration is essential. A nearshoring partnership is a collaborative effort. To establish a nearshore operation in Mexico, both parties must have the ability to work with one another in a coordinated fashion.
Agility as a base for a nearshoring operation
Another essential characteristic in a partner that collaborates with your company under the nearshoring model is agility.
That is, the right partner for a nearshore operation must have the ability to:
- Adapt to new business needs.
- Manage risk.
- Deliver services quickly.
- Perform tasks with high levels of quality and productivity.
- Form an effective and responsive leadership team.
Managing a multidisciplinary group that is physically in a different place can be a significant challenge. The partner managing the nearshore operation must have experience handling a diversity of situations. Procedures must be established that are aimed at effective decision-making. Once decisions are made about the operation, the nearshore partner must take the lead in their execution.
This translates into timely and quality-oriented delivery of service without friction or hiccups.
When the right partner is chosen, Mexico’s nearshoring operation model is cost-effective, promises superior results, and allows you to build work teams with the best talent in the market. The nearshore operation functions without suffering cultural misunderstandings or the need to operate outside the working hours of the home office, as is often the case at geographically distant locations.
A nearshoring operation in Mexico builds a remote team that brings the expected results closer to home.