This is a guest post by Angela Murphy.

Companies everywhere have been on the lookout for new ways to save expenses, boost productivity, and gain an edge in recent years. One method gaining popularity is called “nearshoring,” which is moving business activities to countries that are geographically close to the home country. This article will examine the advantages and disadvantages of nearshoring, as well as how businesses can make the most of this strategy.

Through nearshoring, a company outsources some of its work to a country that is geographically close by. They include things like manufacturing, customer support, software development, and administrative tasks. Nearshoring’s primary goal is to reduce expenses and maximize ROI through outsourcing without compromising the quality of the final product or service.

For instance, a U.S.-based company in search of lower production costs would consider moving some of its factories to nearby Mexico. The company can reduce the number of employees needed to produce the same level of quality while saving money. Similarly, a European company may “nearshore” its software development to countries like Romania or Poland because it is cheaper there to hire qualified IT professionals than in Europe as a whole.

Advantage: Cost Savings

A significant advantage of nearshoring is savings on expenses. By moving some of its operations to a nearby country, a company can save money on labor costs, taxes, and overhead. For instance, a U.S. company could save as much as 50 percent on labor costs in the manufacturing industry by nearshoring to Mexico. Furthermore, experts from Verified Movers always state that having local and close options is a better solution for your client as well, as you can provide them with prompt and easy solutions should any issues arise.

Keep reading in Universal Cargo’s blog.