5 Benefits of nearshore IT Outsourcing

Outsourcing is the business practice of hiring a party outside a company to perform services or create products that were traditionally performed in-house by the company’s own employees and staff. Outsourcing is a practice usually undertaken by companies as a cost-cutting measure. As such, it can affect a wide range of jobs, ranging from customer support to manufacturing to the back office. Outsourcing can help businesses reduce labor costs significantly. When a company uses outsourcing, it enlists the help of outside organizations not affiliated with the company to complete certain tasks. The outside organizations typically set up different compensation structures with their employees than the outsourcing company, enabling them to complete the work for less money. This ultimately enables the company that chose to outsource to lower its labor costs.

Businesses can also avoid costs related with overhead, equipment, and technology. In addition to cost savings, companies can employ an outsourcing strategy to better center on the core aspects of the business. Outsourcing non-core activities can improve efficiency and productivity since another entity performs these smaller assignments better than the firm itself. This strategy may also lead to faster turnaround times, increased competitiveness within an industry, and the cutting of overall operational costs.

Many places may offer you outsourcing services but not all of them are the best quality or have experience. Guatemala is a country with a modern infrastructure and strong telecom services added the favorable economy. Some of the benefits of outsourcing from Guatemala include:

  • Cost savings
  • Skilled workforce
  • Cultural compatibility
  • Time saving
  • Focus on other aspects of your business

Cost savings

Outsourcing helps companies experience significant savings in cost reduction in the rates vendors offer outsourced workers compared to in-house employees. In 2018, 62% of companies reported 10% to 25% savings when they outsourced and the remaining 38% of companies reported savings as high as 40%. Your organization can get a much better perspective on cost savings by examining how outsourcing wages compare to in-house wages in some vital areas.

One of the most attractive aspects of outsourcing in Guatemala is the cost saving it generally involves. Because while you will have to pay a fee to the company providing the service, when you outsource payroll, it implies you can avoid the costs involved not only paying in-house staff, but also recruiting and replacing them.

Skilled workforce

Few other nearshore destinations can offer the accent neutrality of Guatemala’s bilingual front-line workforce, as they maintain a high level of English and Spanish competency, as well as a solid cultural affinity with the U.S. and Canada. In fact, many agents have lived or spent time in the U.S., which has scaled their familiarity and affability with domestic consumers. At the heart of the Central American nation, Guatemala City enjoys a thriving workforce of over 3 million people — 70% of whom are under the age of 30. Guatemala also produces the largest student volume in Central America with as many as 170,000 students enrolled across ten universities that feed various national industries, including BPO services.

Cultural compatibility

Believe It or not, there are many connections and similarities that culturally connect Guatemala to the U.S., as mentioned before a big part of agents have lived in the U.S. and the level of English spoken in Guatemala is very close to sounding like the native level. Education is also similar, in Guatemala a big chunk of schools are bilingual which is part of why the English level is so good.

The wonders of modern technology have overhauled the industry of recruiting and maintaining labor. Outsourcing lets business owners hire far-flung talents and perspectives that may not be like what they have in their backyards. It also helps their businesses be more well-rounded, diverse, and unique. Hiring outsourced work has tremendous benefits both for the employer and the employee. Choosing an outsourcing partner from a country that has several similarities with the same culture as yours has various advantages. Obviously, language is an essential pillar of a smooth working relationship. Working with another country where outsourced employees are fluent in the employers or clients’ language not only greatly decreases problems in misunderstandings and misinformation, but also fosters an engaging trade of thoughts.

Strategic location

Many places may offer you outsourcing services but not all of them are the best quality or have experience. Guatemala is a country with a modern infrastructure and strong telecom services added the favorable economy. One of the benefits of doing outsourcing in Guatemala it´s the great geographical location. Its proximity to Mexico and Central America makes a country bridge of over 68 million inhabitants, with a production area of more than $319,000 million dollars, according to estimates by the Swiss – Guatemalan Chamber of Commerce. After years of continuing to offer outsourcing, it continues to rank as one of the primary outsourcing destinations for the BPO industry. Additionally, its privileged geographical location that allows it to limit both the Pacific Ocean and the Atlantic Ocean, has facilitated access to the member countries of the North American Free Trade Agreement (NAFTA) and this has positioned this nation as a point key for international trade and thanks to this the transportation and logistics costs are lower.

Guatemala has become an important destination for foreign investors, since the country contributes to 40% of the economic performance of the region and with its nearly 17 million inhabitants, it is recognized as the most vital market in Central America. Thanks to its geography, the nation features a logistics service over the Pacific and Atlantic oceans and has created a free trade range with the US and Mexican economies.

The processes that a company chooses to outsource determine how effectively it controls said services. The companies that excel in finding quality outsourcing services and choosing what will be outsourced, will end up with merely superior services and ability to recognize and utilize changes in their market.

Implementing and hiring an outsourcing service in Guatemala has a lot of benefits and offers solutions to many common problems. If you are ready to apply these services to your company, we are what you are looking for. Please get in touch with us at alliedITS.com and get more information.

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