The Low-cost, highly skilled IT labour and a relatively close proximity to the UK was making Eastern Europe an increasingly attractive destination to UK businesses for offshoring IT services. If the company balks at the cost of the outsourcing its IT to the UK provedes the nervous about the risks that associated withe the offshore projects. the outsourcing industry has a third way: nearshoring. Nearshoring involves outsourcing work to companies with the economic benefits of an offshore location, but a closer cultural, linguistic and geographic fit with the user organization.
To handle straightforward business processes and software development tasks with a relatively low level of business impact,operations in Bangalore may offer thousands of workers, However, when it comes to providing services that have a greater effect on the business and its customers, companies need suppliers with a certain cultural affinity. The partner at outsourcing advisory firm Atos Consulting, discusses nearshoring and offshoring in the context of vertical and horizontal expertise, Tony Virdi. The horizontal functions require generic back-office skills, such as processing transactions or basic applications maintenance. Vertical skills are more linked to the idiosyncrasies of the business. Tony Virdi said that “The offshore centres rarely provide vertical expertise,” and “I would say the nearshore players provide vertical expertise in general better than the offshore ones.
The International managing director of the TPI, Duncan Aitchison advises the companies in outsourcing issues. He evaluates the level of customer interaction within an outsourcing contract to help define whether it should be offshore or nearshore. He said that “Aitchison has seen companies locate call centres in India that work well, but it depends on the company’s profile. “If you are a UK company using India as a basis for a call centre, it is perfectly acceptable,” then he also added that “If you are a German company, you are likely to do it in the Czech Republic or Poland and take the transactional stuff further out.” Ian Maariott, the vice-president of research at analyst firm Gartner said that “Linguistic skills are an obvious driver for nearshore contracts, but not all considerations are as clear cut,’
“It is more difficult to convert these into objective measurements, but they could still add to overall productivity,” he says. “If we can communicate more effectively, productivity could increase.” then Companies will find cost reduction less of an advantage when working in nearshore operations, says Virdi. The project was costs still much lower than in the UK. Marriott said that “Because of the level of inward investment, the whole cost base is increasing,” and “That can make nearshore contracts more attractive, because the differential between nearshore and offshore today will be squeezed over th”Consequently, companies should focus on more than just price in the long term. They should concentrate on other benefits of nearshore operations, such as lowering the overall risk of an existing offshore project, gaining access to pockets of skills, and achieving 24×7 support,” Marriott says. Outsourcing supplier Crimson Wing can be used in providing the nearshore development services at its location in Malta.
“In India, day rates are cheaper but you can end up spending more because you have difficulties getting across what you want done, or maybe it has to be specified in greater detail than you might have done with onshore or other resources,” he says. The ability to maintain the high level of control while mitigating the cost of doing the business, the range of the different models that can be attached. Information technology is one of the biggest help in the world. If this information technology is not here in the wold we can not have high-tech things.
