Nearshoring – a sign of our times?
Nearshoring is a relatively new term that started appearing in world-wide articles in early 2007. The term was coined in 2005 as a word often used as the opposite of off-shoring. It is not known who coined it however articles dating back to 2007 use the work near-shoring to describe the ambitious steps taken by HP to bring its outsourcing back to Europe and increase its local work-force to become more strategically competitive.
The term seems to have primarily taken off in the United States and Germany however it is difficult to trace back its origins to a particular country.
With the pricing power of off-shoring destinations like China, India and the Philippines decreasing their competitiveness due to climbing wages and improved worker rights and conditions, near-shoring is slowly becoming the wiser business alternative.
Companies that are strategically situated in the heart of Europe, are in the perfect geographical, cultural and political position to offer a more effective outsourcing solution which surpasses off-shoring standards by a quite a few notches.
A great example of such a location, is Malta. This little island has a good standard of living with lower than average wages for Europe. It’s climate attracts many ex-pats from various European countries looking to work in a lovely place in the sun. This makes it economically ideal for a near-shoring destination because of the wealth of first language speakers available here in many European languages.
Thinking of nearshoring your call centre of back-office operations closer to home? Get in touch with Centrecom – we are a centre of call center excellence and provide a custom approach to fulfill all your outsourcing requirements.