Editing Nearshoring (section)

== Overview ==
Offshoring involves relocating work to a foreign organization to reduce costs, but challenges include time differences, local labor laws, and reduced oversight.<ref name="sam">{{Cite web
|url= http://www.ittoday.info/Articles/nearshoring.htm
|title=Nearshoring: A Smart Alternative to Offshore
|work=IT Today
|accessdate=9 January 2011
|author=Cinquegrani, Sam
|publisher=Auerbach Publications
}}</ref> For example, a Western European IT company may outsource software development to India for its skilled,<ref name="india">{{cite news |last=Reinhardt |first=Andy |date=2004-03-01 |title=Forget India, Let's Go To Bulgaria |url=https://simplycontact.com/services/customer-support/ |archive-url=https://archive.today/20130118150128/http://www.businessweek.com/stories/2004-02-29/forget-india-lets-go-to-bulgaria |archive-date=2013-01-18 |accessdate=2009-11-07 |publisher=[[Business Week]]}}</ref> low-cost workforce, but the distance complicates management and increases risks like [[fraud]] and [[intellectual property]] theft.<ref name="sam"/>

In Europe, nearshoring relationships are between clients in larger European economies and various providers in smaller European nations. Major centers are in [[Spain]]{{Citation needed|date=January 2017}}, [[Czech Republic]], [[Hungary]], [[Portugal]], [[Poland]], [[Slovakia]], [[Romania]], [[Bulgaria]], [[Belarus]] and the [[Baltic states|Baltic]]. There are also nearshore centers in larger markets, such as [[Russia]] and [[Ukraine]]. These destinations are attractive because they are low-cost, have skilled labor forces, and a less stringent regulatory environment, but crucially they allow for more day to day physical oversight. They also have strong cultural ties to the major economic centers in Europe.<ref>{{cite journal |last=Thomas |first=Meyer |date=2006-08-14 |title=Offshoring to new shores: Nearshoring to Central and Eastern Europe |url=http://www.dbresearch.com/PROD/DBR_INTERNET_EN-PROD/PROD0000000000201757.PDF |journal=DB Research |publisher=[[Deutsche Bank]] |archive-url=https://web.archive.org/web/20070223055057/http://www.dbresearch.com/PROD/DBR_INTERNET_EN-PROD/PROD0000000000201757.PDF |archive-date=2007-02-23 |accessdate=2009-03-22}}</ref> For example, Bulgaria is now considered to be a viable outsourcing destination for such companies as German software company [[SAP AG|SAP]], where labor costs are low, and the skills available, but which is also closer to home.<ref name="india"/> In 2009, the Central-Eastern European Outsourcing Association (CEEOA) published research estimating that the Eastern European region has over 95,000 [[Information technology|IT]] specialists involved in the industry, working for close to 5000 companies.<ref>{{cite report
  | title = Cerntral and Eastern European Outsourcing Review 2010
  | date = 2010
  | url = http://ceeoa.org/assets/Uploads/CEEITOReview2010.final.pdf
  | accessdate = 2013-07-22}}</ref> 

In the USA, American clients nearshore to [[Canada]]<ref name=":4" /> and [[Mexico]],<ref name="sam"/><ref>{{cite news
  | last = Kanellos
  | first = Michael
  | title = Mexico sells itself as 'nearshore' outsourcing hub for US: Venga! Venga!
  | publisher = Silicon.com
  | date = 2009-05-18
  | url = http://services.silicon.com/itoutsourcing/0,3800004871,39158964,00.htm
  | accessdate = 2009-03-22}}</ref> or both,<ref>{{cite news |last=Marsh |first=Rae Anne |date=2014-01-01 |title=Trade across the border. Arizona is building strong ties with Mexico and Canada. |url=http://inbusinessmag.com/building-your-business/trade-across-border |archive-url=https://archive.today/20141104043205/http://inbusinessmag.com/building-your-business/trade-across-border%23.VFhWvX3LfK4 |archive-date=2014-11-04 |accessdate=2014-11-03 |publisher=inbusinessmag.com}}</ref> as well as to many other nations in Central and South America, like [[Argentina]], [[Brazil]], [[Costa Rica]] or [[Colombia]], and the Caribbean, to the [[Dominican Republic]], [[Guyana]], [[Jamaica]], and the [[U.S. Virgin Islands]].

A popular type of nearshoring is in software development, with the main benefit being many skilled developers available at low cost.<ref>{{cite news|url=https://www.nearshore-it.eu/|title=Custom Software Development Company|accessdate=2018-01-22|publisher=nearshore-it.eu}}</ref> Call centers, shared services centers, and BPO ([[Business process outsourcing|Business Process Outsourcing]]) are also common choices for nearshoring, as the value of offshore outsourcing hotbeds like Philippines lowers.<ref>{{Cite news|url=https://www.nearshoreamericas.com/philippines-value-proposition-sinks-nearshore-gains-atento/|title=As Philippines Value Prop Sinks, Nearshore Steps Up, Says Atento Exec - Nearshore Americas|date=2017-08-23|work=Nearshore Americas|access-date=2018-08-20|language=en-US}}</ref>  

The complexity of offshoring stems from different languages and cultures, long distances and different time zones, spending more time and effort on establishing trust and long-term relationships, overriding communication barriers and activities of that kind. Many nearshore providers attempted to circumvent communication and project management barriers by developing new ways to align organizations. As a result, concepts such as [[remote insourcing]] were created to  give clients more control in managing their own projects. Despite recent developments, nearshoring does not necessarily overcome all of the barriers, but the proximity allows more flexibility to align organizations.<ref name="sam" /> 

Nearshoring has become a differentiator for those nations and providers who wish to set themselves apart from sourcing centers in Asia, especially the dominant India, which itself is seeing a sharp decline in BPO job growth.<ref>{{Cite news|url=https://www.nearshoreamericas.com/india-sees-sharp-decline-in-bpo-job-growth/|title=India BPO Reports Sharp Decline in Job Growth - Nearshore Americas|date=2018-04-10|work=Nearshore Americas|access-date=2018-09-14|language=en-US}}</ref>

The English language is the cornerstone of any Nearshore BPO or IT services operation, and has become a sought-after skill as companies strive to capture a larger chunk of the US market. With the triple helix of university, industry, and government all collaborating to develop the language further, the hunt for skilled, English-speaking talent is slowly becoming easier.<ref>{{Cite news|url=https://www.nearshoreamericas.com/nearshore-english-evolution/|title=The Nearshore English Evolution - Nearshore Americas|work=Nearshore Americas|access-date=2018-09-14|language=en-US}}</ref>