Here you will know what is Nearshore and how it works for your company!

Have you ever heard about the term Nearshore? Influential leaders have been considering the advantages and disadvantages of outsourcing in its different forms: onshore, offshore, and Nearshore. Defining strategies and building profitable and efficient business partnerships is a constant challenge for every growing company. Decision-making is a multifactorial issue. When it comes to going beyond borders, there are a lot of additional factors to consider.

Knowing each of these modalities is vital when opting for any of these forms of contracting. The success of the business alliances established in the future will depend on it! When we talk about outsourcing, we refer to hiring services from a third party outside our company to carry out tasks that our workers traditionally performed.

The critical element that differentiates onshore, offshore and Nearshore outsourcing is the distance between the contracting company and the company that will provide the services. Based on this, we can define each modality as:

    • Onshore: contracting of service providers within the same country.
    • Offshore: contracting of service providers in a country considered distant.
    • Nearshore: contracting services from a geographically close supplier.

Now that we know these definitions, we should go deeper on Nearshore. It encompasses the benefits of both onshore and offshore. It has become one of the most successful forms of outsourcing today.

Nearshore Characteristics

We define Nearshore as the outsourcing or externalizing services to countries whose geographical proximity facilitates work processes and implies benefits in terms of costs and productivity.

When we talk about Nearshore concerning Europe, Spain, Portugal, Czech Republic, Hungary, Poland, Slovakia, Romania, and Bulgaria stand out as the preferred choice. The broad market now identifies Nearshore with primarily Canada and Mexico for the U.S. market.

The choice of this modality considers geographical location, cultural similarities, political and economic ties, and legal situation. The best combination of factors will result in the country with the most appropriate conditions to be the desired service provider.

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What are the benefits of Nearshore for your company?

Nearshore reduces costs

The outsourcing phenomenon is gaining strength and importance within the business environment. Cost reduction is one of the advantages, with the highest weighting among 80% of the companies consulted in the United States, the Netherlands, Germany, and Spain. The reduction of fixed costs associated with maintaining an in-house workforce and human resource management is evident. This is one of the most essential and visible benefits when opting for nearshoring. Even those who have decided on offshoring have discovered the chain of hidden costs associated with this modality. Travel, supply chain, and other expenses make it a more costly model in the long run.

Increased reinvestment and growth of your business

Significant savings will allow your company to decide when outsourcing nearby to reinvest that money to grow, plan and articulate an internationalization strategy for the future.

Geographic proximity

Geographic proximity brings your company many benefits:

    • Savings in merchandise shipping and transportation costs.
    • The similarities in the time zone are an essential factor. Although this characteristic may seem irrelevant, you will discover its strengths when working as a team. We can coordinate daily communication, meetings, and even business travel more quickly and productive!

Cultural similarity and economic and legal relationships

In the financial and legal aspect, proximity offers favorable business agreements for both parties in many cases. Also, legislation that minimizes the traditional formalities when carrying out commercial contracts. The fact of sharing ties of different natures due to proximity favors understanding between the parties and the comprehension of common scenarios.

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Market knowledge and increased competitiveness

Belonging to the same geographical area offers a much closer and accurate vision of the reality of the companies we would like to hire. It also opens the doors to compete with our peers in better condition.

Nearshore and software development companies

One of the business sectors that has seen Nearshore flourish with increasing strength and prosperity is software development. Many North American companies are resorting to hiring personnel in Latin America. More recently, large development companies within Latin America are opening their doors to talent from neighboring countries.

Additional advantages center on:

    • Easy access to highly educated technology professionals prepared to meet the challenges ahead.
    • People used to work as part of a team.
    • Employees with diverse language proficiency.
    • Low cost per hour, compared to other options.

The cost/benefit ratio is the most beneficial for both parts, and we assure growth for all .

Hypernova Labs is convinced that cooperation and professionalism is the key to success. Therefore, it is always willing to explore new possibilities, broaden its horizons and bet on new talents and business alliances. We are your best option. Ask us today how to imagine together and build a future!

We can also be Silicon Valley: from California to Panama City (1)

We can also be Silicon Valley: from California to Panama City (1)

The name Silicon Valley brings to mind an immense number of images. From the most common about the multiple technology companies that make life there to the most futuristic that imagine the crossing of physical borders and their expansion into new spaces.

And those who dream and imagine a near future with a new Silicon Valley are not wrong. On the contrary, they are closer than they imagine to a possible reality. Latin America has become the center of innovative and challenging technological growth. Panama has begun to work in the necessary conditions to create an appropriate space for the expansion of the technology company. Hypernova Labs understands all the possibilities for advancement and has focused on being a pioneer in technological development and innovation …

Let's make History

In this first installment, we will make a brief account of what Silicon Valley means, its origin and role in technological development worldwide.

Silicon Valley is located south of San Francisco, California in the United States. It brings together more than 2,000 companies in the technology sector, which makes this sector a privileged space.

Its location is a great competitive advantage since it offers the necessary proximity to the best suppliers, clients and research centers.

Silicon Valley has become globally synonymous with research, development and successful companies in the field of technology. Its origin dates back to the years of the Great American Depression. Around this time, Stanford Engineering Professor Frederick Terman takes the initiative to open up development and expansion opportunities for his students. He encourages William Hewlett and David Packard to start their own technological developments and thus the first step towards the creation of Silicon Valley is taken.

Terman becomes Dean of the Faculty of Engineering and together with other professors, they obtain financial aid from the State to promote school research. He founded the Stanford Industrial Park and opened the doors to a host of growing technology projects.

He leased the spaces to companies like Varian Associates, Eastman Kodak, General Electric, Lockheed, and Hewlett-Packard, and the rest is history. Today it houses more than 39 high-tech organizations in innovative areas such as biotechnology.

The term Nearshore has jumped onto the business scene in recent times. The leaders consider the advantages and disadvantages of outsourcing contracting, in its different forms: onshore, offshore and nearshore. Define strategies and build profitable and efficient business alliances is a constant challenge for every company in growth. Decision making is a multifactorial issue. When it comes to passing borders, a host of additional factors are added to consider.

Conocer cada una de las modalidades es vital a la hora de optar por cualquiera de estas formas de contratación,ya que de eso dependerá el éxito de las alianzas de negocio que se establezcan a futuro.

Cuando hablamos de outsourcing, nos referimos a la contratación de servicios de un tercero fuera de nuestra empresa que llevará a cabo tareas que tradicionalmente eran realizadas por trabajadores propios.

What makes Silicon Valley the Mecca of technology?

This space has been called the Mecca of technology due to the rapid growth and success achieved by the companies that comprise it. Silicon Valley is the home par excellence of startups, young companies with a high capacity for growth in a short time, based on the development and use of digital technologies.

Silicon Valley’s success over time is backed by the cooperative spirit of the members of the companies that make life there. Many share a history of academic training. Likewise, the cultural and educational diversity of the professionals that make up the different organizations has led to the creation of a community with a much broader vision and rich in knowledge.

Finally, the fact of being surrounded by many of the best universities and vocational training centers favors the recruitment of personnel who are increasingly prepared and willing to innovate in the right environment.

In our next installment, we will delve into the reasons why Latin America today is fertile ground and full of possibilities for the growth and expansion of technology companies and how Panama is at the forefront, laying the foundations and opening the way to innovators, such as Hypernova Labs to build a new Silicon Valley in our latitudes.