GFT Right Shore: Understanding nearshore outsourcing

Right-shoring describes the nearshore business model, in which an organization outsources labor to a neighboring country. 

Right-shoring describes the nearshore business model, in which an organization outsources labor to a neighboring country. 

This staffing model is an optimization technique for organizations. The geographical proximity that right-shoring provides, as opposed to traditional outsourcing to distant offshore locations, offers a range of advantages for businesses aiming to enhance efficiency and cut costs.

Right-shoring, also known as nearshoring, involves outsourcing business processes, services and teams to countries that border or are in geographic proximity to the clients’ location. The motivations for using this staffing model vary between businesses but can include cultural and time zone alignment and reduced operational costs compared to outsourcing within the same country.

Organizations may choose this model due to its cost efficiency compared to onshore teams. It’s also an opportunity to access a larger talent pool, which can lead to better deliverables. Because Right Shore teams at GFT fulfill the services for a project from a neighboring country, there is often cultural overlap with the organization’s in-house teams. This can help teams connect and lead to better communication and collaboration.

Time zone alignment is another crucial aspect of right-shoring. Unlike offshore outsourcing to countries with significant time zone differences, nearshoring allows for better real-time collaboration. This synchronization of working hours facilitates seamless communication, faster project turnaround times and improved overall productivity. For example, GFT has LatAm Right Shore teams that have a minimal time difference from U.S. clients, allowing for easy, same-day communication.

Knowing how nearshore and offshore compare will allow clients to make an informed business decision. Here are some key comparisons to keep in mind:

Although cultural and time zone alignments are significant advantages of right-shoring, benefits for this staffing model don’t end there. When an organization chooses GFT’s Right Shore teams, it also can enjoy these benefits:

With GFT’s Right Shore staffing model, organizations can enjoy the benefits of lower operation costs in neighboring regions. Nearshoring is a cost-effective alternative to onshore outsourcing, allowing organizations to leverage lower costs in nearby countries. While this staffing model doesn’t provide the same level of cost savings that an offshore team might, cost efficiency is often enough to improve an organization’s budget.

When teams are geographically close, it may help boost productivity and team collaboration. While GFT hosts nearshore teams across the globe, our largest teams reside in LatAm, who are often in tune with American trends and culture, benefiting clients in the U.S.. This shared cultural context minimizes misunderstandings, enhances communication and promotes a more cohesive working relationship.

Right Shore teams typically operate with minimal time differences from the client’s headquarters. Similar time zones ensure that teams can work in overlapping hours, leading to faster decision-making processes and reduced project turnaround times. It also makes real-time collaboration possible, which minimizes project delays and improves communication.

The physical proximity with nearshore teams simplifies travel. If an in-person meeting is needed, this makes it easier to schedule. This can also help add to the collaborative nature of nearshore teams while providing easy management for the organization.

Another advantage of the Right Shore model is cultural diversity. Having people from different locations fosters a great environment within project teams where talent can share their experiences for a richer deliverable. GFT achieves inclusive Right Shore teams by connecting with local universities for strong internship initiatives in Latin America.

Nearshoring often provides access to a pool of skilled professionals in the chosen destination. Instead of limiting organizations to talent from a specific area, GFT’s Right Shore teams bring the best, most qualified talent. In turn, this can improve talent retention.

Compared to offshore staffing models, the regulatory landscape of nearshore teams is much easier to navigate. Neighboring countries are more likely to have shared regional standards and regulatory frameworks. This allows organizations to easily integrate business processes without the complexities of offshore outsourcing.

With more than 40 clients and over 50 projects delivered, our Right Shore team at GFT accomplishes key deliverables to contribute to our clients’ success.

With teams in the U.S., Mexico, Costa Rica, Brazil, Poland,  Spain and now Colombia and India, we have a global presence to assist clients in banking, asset management, manufacturing,  insurance and other industries.

Led with the intention of creating a collaborative and diverse team dynamic, GFT’s Right Shore staffing allows clients to have access to top talent while maintaining their budgets. With an excellent team dynamic and over 600 experts, we ensure that organizations don’t have to sacrifice talent, time zone or cultural alignment to achieve cost-effectiveness—with GFT as a delivery partner, they can have both.