In September last year, when we were still in the early stages of the economic slowdown, and the war for talent was raging, my advice for business leaders was to go global with their talent needs. Leveraging a global talent pool and the advantages of a round-the-clock development cycle could significantly lower costs and improve system uptime for businesses that needed to shore their defenses against the incoming economic slowdown.
Eight months on, the recession is upon us. The economy has slowed down even further, consumer spending activity is weakening, the GDP continues to contract, and experts predict that this situation is not likely to change till Q1 of 2024, at the very least. The stress the global markets are under is clearly visible when we look at sectors such as banking and finance.
If the idea of going global with business operations was insightful then, it’s imperative now. With cost-optimization measures in full swing across industries and verticals, it’s more important now than ever to implement solutions that will help companies keep their spending in check while keeping their business competitive.
Nearshore recruiting is that solution.
What is nearshore recruiting?
Thanks to the great strides in online collaboration and communication technology, businesses today have the option of looking beyond their geographical confines to discover new talent. The pandemic made it very obvious that we don’t need to be in the same physical space to work together. This means you can take your scouting to talent-rich destinations outside your country and find the skills and build the teams you need to get the job done.
But offshore recruiting has its challenges as well. Your projects are operating in conflicting time zones, your teams are working odd hours, and you may be faced with the legal and cultural challenges of working with people from the opposite side of the world.
This is why the strategy of nearshore recruitment—the practice of sourcing talent from neighboring countries, typically sharing a similar time zone, cultural traits, and often a language—works so well. Nearshore recruiting presents a host of benefits, particularly for tech companies that need to optimize their operations and improve productivity.
Nearshore recruiting comes with significant benefits…
These are lessons that I learned first-hand while recruiting through multiple labor crises over the years, the most recent being the pandemic. As labor scarcity spread across talent markets during the lockdowns, we were forced to get creative with our recruiting strategy. We developed expertise in recruiting for US employers from geographically strategic and talent-rich markets in Central and South America. By investing in these markets, we were able to build world-class talent pipelines and learn valuable lessons in delivering quality global talent management.
[Read more about PTP’s expert nearshore talent management and how we can give you the team you need to succeed]
Real-time Collaboration
Real-time collaboration is especially crucial in tech-related fields where real-time problem-solving and agile methodologies are vital to driving innovation. By operating within the same or similar time zones, nearshore teams can work synchronously, effectively enabling real-time communication and collaboration. This results in quicker decision-making, efficient problem-solving, and the seamless integration of workflows.
Accenture, the global professional services company, has been implementing a nearshoring strategy for many years now. They have established several centers in Latin America, including Brazil, Argentina, and Costa Rica, to provide services to their clients in North America. The shared time zone and the high level of technical expertise in these countries make them attractive locations for nearshoring.
Cultural and legal compatibility
While offshore recruitment might offer cost savings, it often presents challenges such as cultural differences, language barriers, and issues related to intellectual property rights and data security. In contrast, nearshoring typically implies less cultural and linguistic diversity, facilitating smoother communication and understanding. Moreover, neighboring countries often share