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Near-Shoring in Costa Rica & Peru

Near-Shore outsourcing with Excel?

Near-Shore is a form of outsourcing that refers to services delivered from an adjacent or nearby country

First coined in 1997, the concept gained ground around 2003 with aggressive marketing from Latin American software development teams. The broad market now identifies Near-Shore with primarily Canada, Mexico, Costa Rica and (more recently) Peru for the U.S. market.

The term has broadened describe any outsourcing location “near” its primary market (i.e. Eastern European countries to Western European Countries).

Near-shore benefits

  • Proximity and Time Zone
  • Cultural Affinity and Ease of Doing Business
  • Cost Savings

These elements serve as a great foundation to build a powerful value proposition for users of global services, but are just the starting point, since without an experienced approach, these benefits cannot be fully realized. We have implemented the Total Cost of Engagement or TCE concept, as an approach that evaluates the total expenditures of offshore engagements, bringing to light the cost competitiveness of a mature Near-Shore model compared to traditional offshore models.

Although Near-Shore rates tend to be higher, the overall cost of Near-Shore engagements is equivalent or less than offshore outsourcing to India or Asia (where project failure rates mostly due to communication breakdown), because of the efficiency gains that working in close proximity to the U.S. and in the same time zones can bring.

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