Nearshoring and offshoring are omnipresent in the IT world. Sometimes as a trend towards shoring, sometimes as a counter-trend away from shoring. But they are never out of focus. The step towards nearshoring (or away from it again) is often of enormous, sometimes even existential importance not only for individual projects, but for entire companies. This is why this step should be approached strategically. The following applies: every nearshoring case is individual and requires a tailor-made solution. At diselva, we are the right people to talk to when it comes to supporting nearshoring and offshoring projects from start to finish. Our experts have not only selected, set up and managed nearshoring locations, but have also worked on numerous projects in various setups with nearshoring and offshore teams in day-to-day business and know exactly what is important.
We have developed the diselva Nearshore Excellence Framework for nearshoring and offshoring consulting. It is based on four pillars that must be taken into account in every nearshoring project:
Für Beratungen rund um das Thema Near- und Offshoring haben wir das diselva Nearshore Excellence Framework entwickelt. Es basiert auf vier Säulen, die in jedem Nearshoring-Projekt berücksichtigt werden müssen:
In the first blog in this series, we take a look at the first pillar of the framework: “Defining and sharpening the business model”.
Before starting a nearshoring project, the motivation behind the decision must first be analyzed and precisely understood. The most important question is: Why nearshoring at all? What is it intended to achieve? Roughly speaking, in most cases, two things are at the forefront:
This fundamental decision is crucial, as it influences the entire further course of the shoring project. Years ago, the focus of nearshoring was often clearly on reducing costs. Companies relocated IT jobs to cheaper countries (extended workbench approach). However, this approach is no longer the only real solution. The “war for talent” has now become the top priority. Competition for well-trained specialists is huge worldwide. Nearshoring locations give companies access to a wider talent pool. This is of paramount strategic importance for many companies, which is why cost reduction is being pushed further and further into the background.
Of course, in the case of a nearshoring location in Eastern Europe, you still benefit from lower costs. However, the difference to the West is becoming smaller. This is due to rising wages and an exported war for talent, as well as the higher demands of local talent: Attractive office space is just as much a matter of course as, for example, the desire for full private health insurance for the entire family).
For many companies, it is no longer enough to simply find cheap labor. Rather, it is a question of attracting and retaining highly qualified talent - in an increasingly competitive environment. In a few years' time, the only relevant question will be whether or not you have access to specialized professionals.
This first pillar is therefore not only about defining the economic goals, but also about thinking about the specific framework conditions that the chosen location must offer. A well-defined business model lays the foundation for the entire nearshoring process - from the choice of location to the team structure.
In the next blog, we will address the question of how to set up and scale a nearshore business. What are the most important steps for successfully establishing the location and how can the business be expanded sustainably? We will also take a look at collaboration models and the successful integration of nearshore teams into project structures.