Near-Shoring Outsourcing - Assignment Example

Outsourcing is one of the strategies used by manufacturers to increase their profitability by reducing expenses. However, some factors make some company to prefer nearshoring. One of the factors includes language barrier and other cultural factors that may negatively affect the business. By nearshoring with bordering countries, a company is likely to avoid the negative effects of the language barrier. Language barriers may affect communication among workers, negatively influencing their relationships. In addition, near-shoring helps a company reduce its expenses, especially transportation costs. This is because nearshoring allows businesses to operate near the home country (Shamis, Green, Sorensen, et al, 2005).

Nearshoring allows businesses to conduct their activities in regions with the same time zones. This implies that through this business strategy, it is easier for a business to control all its operations immediately. It also makes the communication process easier. This enables them to coordinate their operations easily and faster. It is difficult for organizations to conduct the same projects in different time zones. To achieve the goal of the company, workers in a region with a different time zone have to sacrifice by working at night. Working late at night may reduce the productivity of workers (McGrath, 2014).

Companies that practice near-shoring also experience fewer legal issues compared to those that engage in outsourcing. Outsourcing makes a company incur huge immigration costs and other costs associated with government regulations. However, in near-shoring companies have to only deal with neighbouring countries which have fewer immigration and legal issues. Nearshoring also enables a company to enjoy geographical proximity benefits. For instance, it is easier for a company to interact with its customers if they can easily be reached. The situation helps in increasing their loyalty.