The 5 benefits of Nearshoring

In the last decade, the geographic options for outsourcing services have increased. While the traditional relocation of companies to Asia or Eastern Europe was highly coveted in the 1990s for its low-cost workforce, Central America has been gaining appeal as a destination for many technology and services companies.

In Honduras, for example, with a workforce of 3.4 million, mostly between the ages of 18 and 35, companies in the BPO and ITO sector increasingly see unmatched potential for their investment.

In that sense, Nearshoring is the appropriate business methodology. Nearshoring is a business approach whereby an external company provides specific services from another geographic location, which is relatively close to the company area. GK, a leading company in the region in the textile sector and real estate projects, with presence in Honduras, Guatemala, Mexico and the United States, provides these efforts with an ideal space to carry out Nearshore business.

Altia Smart City, both in San Pedro Sula and Tegucigalpa, provides agility in its facilities, better collaboration, more communication possibilities, and a higher level of commitment for companies. The benefits of outsourcing are greatly increased when you are in the right place.


The 5 unquestionable benefits of Nearshoring

US companies are looking for nearshore options in the region, to serve a growing Hispanic market, and also to change locations that may have become less attractive due to diminishing cost advantages and job burnout. Some of the advantages of this trend are:


Shorter flight times

An often-overlooked benefit of Nearshoring is the ability to meet the team face-to-face, which is solved by geographic proximity and shorter flight times.

A faster adaptation process

It is not uncommon for outsourced teams to take several months to get used to your organization’s processes, and also take time to gain enough knowledge to start making valuable contributions. One of the key advantages of Nearshoring is being able to continuously interact with a team that has cultural similarities, and who also knows the native language of the company.


Higher level of participation through a similar culture

Closely linked to the previous one, this advantage of Nearshoring is reduced to culture. Central American culture, and more specifically that of Honduras, Guatemala, or Mexico, is similar and has had more exposure to Western culture. As a result, the team will have no problem providing robust solutions tailored to customer needs.


Better infrastructure than remote or offshore options

The infrastructure in many Central American countries is more reliable than in many other destinations. Taking Altia Smart City as an example, you can be sure that you will have the necessary infrastructure to meet your business requirements.


Lower costs and higher quality

One of the main advantages and attractions of Nearshoring is that it reduces fixed costs, especially in terms of salaries and social security contributions. In addition, the human capital of the region is not only young and dynamic, but it is also highly motivated to grow professionally and learn as many processes as possible.


Some of the additional benefits provided by GK Altia Smart City in terms of Nearshoring are:

Lower real estate costs

Availability of profitable skilled labor +95,000 bilingual inhabitants

Faster setup and friendly legal framework

Strategic location

Less ongoing investment in internal infrastructure is required

Increase flexibility to meet changing business conditions


You may also want to read ITO services, a growth opportunity for Central America


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