A near thing

Close is good. Close is a trusted friend, a much-loved relative, a colleague-turned-confidante. It’s a favourite restaurant you walk to every week, a next-door neighbour who feeds your cat.

So why when it comes to business do so many organisations see distance as a goal? Why do they look to the far corners of the world when the answers may be much closer to home? Why do we offshore when we could near shore?

It’s usually a question of economy. Traditionally, moving large-scale IT projects offshore has been seen as the most cost-effective way of outsourcing operations. But this can be a short-sighted approach that can often result in higher costs and lower productivity.

It’s highly unlikely that you’ll outsource your project and then want no further involvement. You’ll want meetings, phone calls and regular updates. And with flights to India, for example, taking up to 14 hours, with five hour time differences, it can be no mean feat simply trying to set up a meeting or a phone call. Don’t even mention the Visa restrictions, lead and preparation time for flights and an average visit of two weeks just to make each trip worthwhile. Compare this with an average two hour flight to Barcelona, and a one hour time difference and you can already see where I’m coming from.

Flexibility is another huge advantage to near shoring. Often an offshore project will demand a completed plan to be followed to the letter, with big specifications and up-front demands. Take it near shore, and you can develop a fluid, flexible project that can incorporate up-to-the-minute thinking and technology.

There’s often a big (and misguided) focus on the unit price for each individual worker. By only taking this one factor into consideration, many businesses are often led down the offshoring route. But consider that by near shoring in Barcelona, you’ll be working within an EU country that’s culturally similar to the UK, with great transport and communication infrastructures, including a wealth of diverse, rich talent.

As a direct comparison, wages are obviously cheaper in places like India compared to Europe, but unit costs often throw up hidden costs too. A team of five becomes a team of ten. A simple problem becomes a long flight. A minor glitch becomes a major headache. The focus needs to be on the cost of the completed project – not the often broken upfront promises of a cheaper price. Consider this, large complex and evolving projects are typically implemented in 1/3 of the time and half the cost in a near shore environment.

So let’s get over our offshore obsession and our determination to get the cheapest unit price at any cost. Let’s focus on the logical, flexible solutions that near shoring can offer. Close is a good thing…