Offshoring, Nearshoring, or Bestshoring?

You’ve probably heard of ‘offshoring’ by now. Offshoring is the act of outsourcing your contact centre processes to a foreign and distant company with the aim to reduce production costs. It’s often the source of negative publicity; companies who recognise the cost-reduction benefits constantly criticised for threatening local employment. However, these companies cannot afford to adopt this strategy lightly. Dangers of offshoring include: low language skills of the host country causing frustration among callers, different standards of employment creating conflict between organisations and time lag between countries dictating operating hours.

The negative after-effects experienced by offshoring companies gave birth to the idea of nearshoring. Nearshoring is a term created to explain the act of outsourcing your contact centre processes to a company in a nearby (get it) country, often sharing a mutual border with your own country. Nearshoring aims to minimise many of the issues caused by offshoring. As the time difference between companies in close geographic proximity is likely to be minimal, working hours are much the same. The geographic proximity is likely to reduce many of the other afflictions too, such as cultural differences and poor language skills.

So, on the surface nearshoring seems an ideal choice. Well, that’s before we get stuck into bestshoring. Bestshoring, also known as rightshoring, is identifying the best (obviously) location to operate your contact centre. It’s determined by quantifiable criteria that has been decided on and independently evaluated. Ultimately, the best place to locate your contact centre operations could be where it is already, when you weigh up contributing factors such as providing a consistent level of service to your customers.

Whether you choose nearshoring, offshoring or bestshoring as your weapon of choice, your strategy probably has a lot to do with cost reduction. This leads to the next question you should ask yourself: have you considered other ways to minimise the cost of your contact centre, without sacrificing on quality? It’s a question pondered by many a CIO, some not aware of the varied ways to tackle the problem.

The only sure-fire way to safeguard the quality of your contact centre operations is to perform them in the same country as your callers, with agents who speak the native language. This can be costly, once you add up agent and manager wages, the extravagant CapEx required to purchase and set-up the technology infrastructure, not to mention paying specialist staff to maintain and support the system. In this situation, switching your expensive premise-based equipment for a Cloud contact centre solution might be the answer you’re looking for.

By adopting cloud-based technology, you can eliminate the costs of purchasing your own infrastructure and reap the benefits of a solution with a predetermined ROI. For xx phone calls you will pay xx amount of dollars. For each automatic payment it will cost you xx amount of dollars. And, you maintain that quality of service that comes from employing in-house agents.

Still thinking of offshoring, nearshoring or bestshoring? Sure… Did you know that Cloud contact centres can also be used in outsourced or overseas locations? Find out more here.

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