The New Normal Has The Potential To Drive Nearshore Outsourcing Even Further
Jul 01, 2022
Since the mid 90s, nearshoring, a business approach in which a third-party company provides specific services from another geographic location that is relatively close to the company’s area, has been a growing strategy to reduce operating costs for business.
Initially, outsourcing models for US-based multinationals focused on hiring a third party, sometimes located far away, to provide services while maintaining operations in North America. Something that is very expensive.
At that time, cheap labor costs initially made Asian countries an attractive solution. But it wasn’t long before companies realized that focusing on lowest cost came at a high price, including challenging language barriers, unforeseen cultural differences, high employee turnover, or the difficulty of doing business. in widely separated time zones.
Sensing an unparalleled opportunity, Mohammad Yusuf Amdani Bai, Chairman of the Board of Directors of GK, conceived Altia Smart City, which strategically located in both San Pedro Sula and Tegucigalpa, provides agility, better collaboration, more communication possibilities, and a higher level of commitment for companies looking to take advantage of nearshoring.
For this reason, GK, a leading company in the region in the textile sector and industrial real estate projects, with a presence in Honduras, Guatemala, Mexico and the United States, provides these efforts with an ideal space to carry out business. from Nearshore.
The new normal favors the nearshore
The new normal undoubtedly has the potential to drive Nearshore Outsourcing even further. It is in countries like Honduras rather than cities in Asia, where companies in the BPO and ITO sector increasingly see unparalleled potential for their investment.
With the emergence of the Covid-19 pandemic, nearshore models have gained momentum as the go-to solution for many forward-thinking organizations in the United States. The impact of the pandemic has only increased the advantages of Nearshore operating platforms, and exposed the significant risks that offshoring to India, the Philippines, or elsewhere in Asia can bring.
This has caused many major corporations to reevaluate their management strategy in the post-pandemic economy. The supply crisis has revealed the initial problem, but it has also been proven that the tensions are not only in the field of manufacturing, but can also be seen in the field of services, all of which have favored nearshoring as a practical business solution.
The companies that provide services and that have established themselves in Altia Smart City have already enjoyed a very different experience as a result of the new normality. And, as organizations build a definitive blueprint for what the post-coronavirus economy could look like, reports of successes in Honduras should help accelerate widespread adoption of the Nearshore model by more businesses.
In this scenario, and with a buoyant workforce, Altia is emerging as the best option for US companies that are looking for Nearshore options in the region. Shorter flight times or a similar culture are now just some of the benefits that companies will be able to enjoy during the new normal.