January 10, 2024
Nearshoring success? How do we make it happen? For many companies, choosing between nearshoring and offshoring becomes tricky. Nevertheless, there are numerous success stories associated with nearshoring.
This case study explores the successes of a few industry leaders like HubSpot, Whirlpool, Duolingo, and Shopify embracing nearshoring as a transformative strategy.
While we talk about nearshoring, let’s explore offshoring a little as well. Offshoring entails outsourcing to a distant location, frequently in a different continent, whereas nearshoring involves outsourcing to a geographically closer location, often within the same region or continent. The decision between nearshoring and offshoring hinges on factors like cost considerations, necessary expertise, cultural compatibility, and logistical preferences.
HubSpot, a prominent CRM software company, embarked on its nearshoring journey in 2015. Previously, the company outsourced its customer support to a third-party provider in APAC. However, HubSpot sought ways to elevate service quality while reducing costs.
By nearshoring its customer support team to Mexico, HubSpot achieved remarkable results:
These outcomes encouraged HubSpot to expand its nearshoring initiatives. The company now boasts nearshore teams in Mexico, Colombia, and Costa Rica, with plans for continued expansion. Key benefits of HubSpot’s nearshoring strategy include reduced costs, improved service quality, access to a larger talent pool, and improved cultural fit.
Whirlpool, a major appliance manufacturer, ventured into nearshoring in the 1980s by relocating its manufacturing operations to Mexico. In recent years, Whirlpool has extended its nearshoring approach to staffing operations.
Key successes of Whirlpool’s staffing nearshoring strategy include:
Following these accomplishments, Whirlpool expanded its staffing nearshoring initiatives, establishing operations in Mexico, Colombia, and Brazil, with plans for further expansion.
These two case studies illustrate how companies can benefit significantly from nearshoring staffing operations. Such strategies reduce costs, enhance quality, and provide access to a broader pool of qualified talent. Many other industries, including software development, IT, customer service, and creative fields, have also harnessed the potential of nearshoring to optimize their workforce management.
Duolingo’s Approach to Tap into Global Potential through Nearshoring
Duolingo, the language learning juggernaut, has elevated its global impact by strategically embracing nearshoring. The decision to centralize customer support operations in a nearshore company has proven to be a game-changer:
Shopify: Paving the Way for Localized Triumphs Through Nearshoring
Shopify, the e-commerce giant, has harnessed the power of nearshoring to bolster localized customer support and conquer new markets. By strategically nearshoring their workload, Shopify has reaped significant advantages:
Duolingo and Shopify’s triumphs spotlight the transformative potential of nearshoring. Strategic nearshoring choices empower companies to elevate customer support, extend global influence, and realize business objectives while upholding unwavering quality standards. As nearshoring continues to emerge as a preferred operational strategy, businesses of all sizes can harness its advantages to streamline operations, enhance customer satisfaction, and carve a niche in the global market.
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