The way businesses operate around the world is changing very fast. Before, many companies moved their operations to other countries to save money on labor costs. But now, for a bunch of reasons, companies are starting to think twice about this and are looking at bringing those jobs closer to where they sell their products.

What is Nearshoring?

Companies are finding it more and more helpful to move some of their work to countries nearby, instead of sending it overseas. This is called “nearshoring” and it means working with countries in the same region or with similar time zones and operating hours. Because these countries are closer, it can be easier for businesses to manage the work and get things done faster.

Why Nearshore?

More and more companies are choosing to hire from neighboring countries to handle some business tasks, and here are some great reasons for this:

• Supply Chain Resilience
  The COVID-19 pandemic showed us how risky it can be to rely on suppliers far away. Things like bad weather, political problems, or even sickness can mess up deliveries. To avoid this, some companies are bringing their operations closer to where they sell their products. This way, they can react faster to problems and keep things running smoothly.
  
• Cost Efficiency
  While labor costs might be a bit higher in nearby countries compared to faraway ones, nearshoring can actually be cheaper overall. You’ll save on things like shipping, managing supplies, and maybe even taxes. This can make up for the slightly higher labor costs.
  
• Improved Quality Control
  Being close to the production line makes it easier to keep an eye on things. When a company brings manufacturing closer (nearshoring) they can make sure products are built right the first time. This means fewer mistakes, more consistent quality, and a better final product for your customers
  
• Faster Time to Market
  Getting products from factories to customers quicker gives businesses a big advantage.  It means they can deliver faster and adjust to what the market wants more easily. This is especially important these days, when things move so fast in the business world.
  
• Intellectual Property Protection
  Keeping your ideas safe is a big deal for most businesses. When you work with someone close by, like in a nearshoring situation, it can be easier to make sure your sensitive information and confidential inventions stay that way.
  
• Talent Acquisition and Retention
  Finding good employees can be tough, but some places near your company might have just what you’re looking for. These countries often have skilled workers who understand your company’s culture because it’s similar to their own. This can make it easier to hire great people and keep them happy in their jobs for a long time.
  
• Enhanced Customer Service
  Being closer to your customers makes it easier to talk and work together. This can mean quicker solutions to problems and happier customers who are more likely to stick with you in the long run.

Nearshoring can be a great way to expand your business, but going through the legal and logistical hurdles of managing employees in a new country can be very stressful. That’s where an Employer of Record (EOR), like Filta, comes in as your teammate and helps you by smoothing out the entire process. 

We are experts in the local employment laws of over 150 countries, so you can be at peace knowing that we can handle all the complicated paperwork and ensure your business follows all the rules. 

We take care of all the payroll, taxes, and benefits for your new employees. Plus, we also act as a shield, taking on any employment-related risks so you don’t have to worry. By partnering with an EOR, you can simplify your nearshoring journey, avoid administrative headaches, and concentrate on managing your team and growing your business.

Nearshoring can be a great way to expand your business, but it’s not always easy.  An Employer of Record (EOR) is like a helping hand, smoothing things out and making the most of this strategic move.

As the business world keeps changing, nearshoring is becoming more and more important for success. Companies that jump on board and do it well are setting themselves up for success in the future.

Visit www.filtaglobal.com to learn more.