With more companies turning to Latin America for Salesforce talent, it’s clear that nearshore outsourcing is still gaining momentum—and for good reason. Outsourcing gives businesses a cost-effective way to access skilled professionals while freeing up internal teams to focus on their higher priorities.
But with so many outsourcing options available, how do you decide which is the best fit for your needs? In this blog, we’ll explore growing trend of outsourcing, see what makes nearshoring in Latin America so appealing, and share best practices for successful partnerships.
What is Outsourcing?
Before we get into the different types of outsourcing, it's important to understand what it is and how it works. Outsourcing is the process of hiring a third-party to perform specific tasks or services. The third-party can be located anywhere in the world, from the same city to a different continent. Companies outsource for a variety of reasons, but the primary reason is to save money and remain competitive in a global economy. It allows companies to access skilled professionals without the need to hire full-time employees, reducing labor costs and overhead.
Outsourcing is not the same as subcontracting, which is the practice of assigning parts of a project to another company. On the contrary, it is a longer-term arrangement where the third-party takes on a larger role and responsibility. The third-party is responsible for the entire task or service and is usually the sole provider.
Outsourcing Done Right
When deciding which type of outsourcing to use, it's important to do a cost-benefit analysis. Companies should consider the cost of outsourcing compared to the cost of hiring full-time employees, as well as the potential savings from outsourcing. For example, Modelit's prices are 68% lower than hiring in-house, making nearshore outsourcing an incredibly cost-effective option.
Companies should also evaluate the pros and cons of each of the three types of outsourcing and the legal implications that may arise with each of them. While outsourcing could be the perfect solution for a company, it is always crucial to follow best practices to ensure a successful outsourcing arrangement. Companies should clearly define the scope of the project, set measurable goals, and have clear communication and collaboration processes. Then, they ought to put a plan in place to handle any potential legal and regulatory issues.
The Nearshore Edge
Nearshore outsourcing, particularly in Latin America, offers an incredible opportunity for companies looking to expand their talent pool and improve overall synergy between both parties. According to World Economic Forum, the amount of South American talent working remotely for North American companies rose by 70% between 2020 and 2023. This several key benefits of this type of outsourcing make it a strategic choice for businesses worldwide.
Latin America stands out as a nearshore destination due to its competitive pricing and exceptional talent. The cost savings derive not only from lower labor costs but also from reduced expenses associated with travel, communication, and cultural adjustments.
Time zone overlap with Latin America ensures that companies can easily remain in touch with their nearshore team, enabling faster decision-making, improved productivity, and seamless project management. Cultural alignment further enhances communication, fosters a better understanding of client needs, and builds trust between both parties.
Outsourcing to Latin America provides access to a vast pool of specialized skills and expertise, especially in Salesforce, that may not be readily available in the local market. This access allows companies to stay competitive, agile, and prepared to meet the demands of their industries.
To Wrap Up
Outsourcing is an excellent solution for companies aiming to reduce costs, access a broader talent pool, and keep their in-house teams focused on core priorities. With various outsourcing models available, each with unique benefits and challenges, conducting a thorough cost-benefit analysis is essential to finding the right fit. Nearshore outsourcing, particularly to Latin America, stands out as an ideal option for many companies. It offers a perfect balance of affordability and the convenience of overlapping time zones, cultural alignment, and shared language.
While nearshore outsourcing provides significant advantages, it also comes with multiple delivery methods, each suited to specific business needs. Ultimately, understanding the company’s goals, the scope of the project, and the desired outcomes will guide organizations toward selecting the best outsourcing model for their success.
