Research & Thoughts

Nearshore – Close, Compliant and Cost-effective

Close at hand to address your competitive challenges

Nearshore can provide the most viable response to a need for complex solutions with strict time-to-market constraints. Technical and language skills, combined with geographical proximity and regulatory compliance (work permits, visas, data protection) enable smooth collaboration. In the Euro countries, currency risk can often be eliminated. And at around 30%, the cost advantage remains very compelling, compared to mature markets. Find out more.

Do you need to deliver time and mission critical projects that meet your cost containment criteria, while providing world-class responses to the demands of mature banking markets? If yes, the solution is near to hand.

Nearshoring is an attractive option for banks that require additional specialist skills, mainly delivered remotely and at up to 30% discount on average, compared to the full onshore alternative. In contrast to offshoring, nearshore business and IT experts can quickly be deployed on-site, for situations that include building on-site task forces or workshops. Often, these services are provided in the client’s first language by well-educated experts. This approach provides close cultural alignment with banks’ operational values and commercial pressures. Nearshoring fits well with the European regulatory context, removing many of the data protection, visa and work permit obstacles of full offshoring. Nearshoring addresses the skills and continuously increasing demographic resource gap that occurs in many highly mature banking markets. And it achieves all these positives with minimal logistics-related disruption.

Overview – Nearshore is a valuable component of a bigger sourcing picture
With continuing pressures on banking profitability, it is vital to control costs in every area of your operations, across both business and IT. For some time, financial institutions have leveraged the savings provided by full offshoring. Depending on their culture and operational maturity, some have made very substantial use indeed of offshoring. So is it the case that, over time, everything physically possible to move offshore will inevitably be moved? Will there be nothing left?

Certainly not. Many strategic and core functions will continue to be carried out close to the principal client base. But that does not mean there will be no changes at all in approach. Ever-increasing world market competition demands that functions become progressively more agile, as banking products increase in variety and complexity. Effective delivery requires even more effective communication and an even greater degree of responsiveness and flexibility. In this context, there will remain a whole series of specific activities and situations that are best handled on or nearshore. Proximity will be a very valuable characteristic of a flexible, agile and responsive service.