Small and medium-sized businesses (SMBs) and growing accounting firms are dealing with some unique challenges when it comes to expanding their operations in a competitive labor market. They're all about efficiency and growth, but one big question keeps popping up: Should they dip their toes into the pool of nearshore talent?
However, there's this lingering hesitation among these folks when it comes to the idea of hiring international employees.
Even though nearshoring has become pretty popular lately, especially in areas like IT and services like accounting and finance, many smaller businesses and up-and-coming firms are still a bit wary of the whole concept. They don't seem to realize that there's a goldmine of benefits waiting for them, like having a skilled workforce, saving on costs, and working in the same time zones. So, what's holding them back? Misconceptions, that's what!
The misconceptions about nearshoring
One big reason why small and growing companies are hesitant to hire talent from nearshore locations is because they think it's something only big players do. They imagine only the corporate giants, like the Big 4, can afford to bring in folks from the other side of the world. While there's some truth to that, especially if you have the resources to dedicate a whole team to tasks like data entry while you sleep, there are plenty of ways to make this cost-effective hiring approach work on a smaller scale.
So, let’s see what we are dealing with:
Nearshoring is only for large corporations
This is not true. Nearshoring can be a viable option for SMBs and growing firms that need to access specialized skills, increase their capacity, or reduce their costs. Nearshoring can also provide more flexibility and agility than traditional outsourcing models, as it allows for closer collaboration and communication with the nearshore team.
But it will depend on what you need. Big corporations that hire employees from the other side of the world like India or the Philippines are usually looking for big-scale information processing, a Ford-kind of operation where the wheel keeps running 24/7 with minimum supervision and risk. Smaller firms usually need more hands-on positions, like managers and leaders who need to work on the same working schedules as the on-side team and, specifically, clients. Nearshoring is the answer to that.
"Nearshoring is risky and complicated"
This is also not true. Nearshoring can actually reduce some of the risks and complexities associated with outsourcing, such as cultural differences, legal issues, quality control, and data security. By choosing a nearshore partner that shares similar values, standards, and regulations, SMBs and growing firms can minimize the potential challenges and ensure a smooth transition.
"Nearshoring will compromise the quality of work and customer satisfaction"
Nearshoring can actually improve the quality of work and customer satisfaction by providing access to highly skilled and experienced professionals who can deliver high-quality results in a timely manner. Nearshoring can also enhance customer satisfaction by enabling faster response times, better availability, and more personalized service.
The benefits of nearshoring for SMBs and growing firms
So why would a SMB or a mid-sized firm consider nearshoring for their business? Let’s see some of the benefits nearshoring offers on top of offshoring:
Cost savings
Nearshoring can help SMBs and growing firms save on labor costs, as they can hire talent from countries with lower wages than their home country. According to a report by Deloitte, nearshoring can result in an average cost savings of 30% compared to onshore outsourcing. Nearshoring can also help save on operational costs, such as travel expenses, infrastructure, and taxes.
Talent acquisition
Nearshoring can help SMBs and growing firms access a larger pool of talent that may not be available or affordable in their home country. Nearshoring can also help address the talent shortage that many accounting firms face due to declining accounting graduate numbers, high turnover rates, and increased competition. By hiring talent nearshore, SMBs and growing firms can tap into a diverse and qualified workforce that can meet their specific needs and expectations.
Competitive advantage
Nearshoring can help SMBs and growing firms gain a competitive edge in their market by enabling them to offer more value-added services, improve their efficiency and productivity, and innovate faster. Nearshoring can also help them differentiate themselves from their competitors by providing better customer service, faster delivery times, and higher quality standards.
How to choose the right nearshore partner
If you are convinced that nearshoring can be a beneficial strategy for your SMB or growing firm, the next step is to find the right nearshore partner that can meet your needs and expectations. Here are some tips on how to choose the best nearshore partner for your accounting or finance business:
Do your research
Before you contact any potential nearshore partner, do some background research on their reputation, experience, portfolio, and testimonials. Look for a nearshore partner with a proven track record of working with SMBs and growing firms in your industry and niche. You can also check their online reviews, ratings, and feedback from previous clients to get a sense of their quality and reliability.
Define your goals and requirements
Before you start the negotiation process, make sure you have a clear idea of what you want to achieve with nearshoring and what you expect from your nearshore partner. Define your goals, scope, budget, timeline, and deliverables. Also, specify your quality standards, communication preferences, and performance indicators. Having a clear vision and criteria will help you evaluate and compare different nearshore partners and find the best fit for your business.
Communicate and collaborate
Once you have selected a nearshore partner, establish a regular and effective communication channel with them. Communicate your expectations, feedback, and concerns clearly and openly. Also, involve your nearshore team in your decision-making process and treat them as an extension of your own team. By building a strong relationship and trust with your nearshore partner, you can ensure a smooth collaboration and a successful outcome.
Conclusion
Nearshoring is not only for large corporations that have the scale and resources to manage offshore teams. Nearshoring can also be a viable option for SMBs and growing firms that need to access specialized skills, increase their capacity, or reduce their costs.
The key to successful nearshoring is finding the right nearshore partner that can meet your needs and expectations. By doing your research, defining your goals and requirements, and communicating and collaborating with your nearshore partner, you can find the best nearshore partner for your accounting or finance business.
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