As businesses continue to compete in various markets, they look for ways to grow and remain competitive. One strategy that has been used for over half a century is offshoring, which involves relocating manufacturing plants to low-cost countries to take advantage of lower wages. In recent years, however, corporations have also been outsourcing their call centers and back-office tasks to other developing countries to reduce service and employee costs. This strategy has not only helped corporations lower their costs but also led to increased employment rates in low- and middle-income countries.

With the rapid evolution of technology, companies began competing for the best developers and programmers. By 2016, there were approximately 3 million more technology and science jobs available in the United States than qualified workers, leading companies to search for top talent abroad. The boom in information technology staffing firms helped companies fill the talent gap in their home countries and obtain employees who would work for lower wages.

The Covid-19 pandemic in 2020 led to new ways of working, as employees had to work from home. Remote work, which was previously reserved for technology jobs, became necessary for all positions. In early 2021, the “Great Resignation” emerged in the United States, in which employees voluntarily resigned from their jobs en masse. This, coupled with soaring inflation rates and the fear of a recession, forced businesses to find new strategies to obtain top talent and save as much money as possible. Offshore and nearshore staffing have emerged as a trend in 2022, not only for technology jobs but for all kinds of positions.

Nearshore staffing can help businesses fill positions with people in their time zone and individuals culturally similar to those in the main business location, improving communication with their teams. This strategy is not reserved for big corporations; businesses of any size can take advantage of it. Hiring a single virtual executive assistant or a complete team of digital designers, developers, and call center workers are just some of the positions that can be filled through nearshore staffing.

To succeed in working with remote talent through a nearshore firm, businesses must analyze which jobs can be done remotely, supply the necessary tools, and have policies and procedures in place. When ready to use nearshore or offshore staffing, businesses should evaluate the benefits they need the most, such as the same culture as theirs, the ability to select staff, scalability, employee turnover rate, extra value-added for them and their team, quality of candidates, service and support provided by the firm, and team management.

Partnering with a staffing firm can present challenges, such as communication with the remote team and having clear goals, expectations, and policies. However, nearshore and offshore remote teams can provide small- and medium-sized businesses with the necessary talent without sacrificing their budgets and scales, allowing them to grow quickly. Implementing nearshore and offshore as a strategy can help businesses tap into the global talent pool while becoming more competitive in costs.

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