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  3. What is a nearshore strategy?

What is a nearshore strategy?

Fecha
16 de Diciembre de 2020
Datos clave de Bogotá

A nearshore strategy, is an international strategy that allows companies to adapt their productive process to the international commerce by relocating their operations to a location closer to their prioritized markets.

The objective of this model is to simplify the production process of the companies, which allows more control from the business manager, a better added value and more flexibility in their production or services.

A few years ago, the nearshoring strategy became a worldwide tendency for many companies, as a result of an inefficient, although cheaper, offshoring strategy which made business and work more complex. 

After experiencing a pandemic like Covid-19, this tendency became more popular within companies, because the new reality has proven the importance of finding an efficient production process that can guarantee the constant supply for consumers. 

What are the benefits?

Implementing a strategy of nearshoring has shown companies benefits such as proximity and high-quality service because: 

  • As there are fewer time zone differences, virtual teams can have an easier communication and can provide solutions in a faster way. This provides a more stable and productive workforce.
  • Less expensive travel and shorter flight times, so decision making specially in critical situations can be easier.
  • Intellectual property is safer, as there is much control of the processes. 
  • The company can be closer and have better responses to their clients
  • Better skilled workforce and less nightshifts

Opportunities for Bogota

Because of the Coronavirus pandemic many economic sectors have been forced to look for strategies that will allow them to keep their businesses running, and one such case is nearshoring. Faced with a possible regionalization of supply chains, there are opportunities in our region in manufacturing products and the provision of services to be offered in markets such as the United States.

According to a recent analysis made by the Chamber of Commerce – AmCham, Colombia presents opportunities to be part of the global value chains through intermediate goods, such as building materials, chemicals, pharmaceuticals and electronic components. 

Undoubtedly, Bogota is one of the main Latin American capitals providing such inputs to the North American market, with extensive opportunities in the development of outsourcing operations. Colombia's BPO sector generates more than 230,000 direct jobs, has recorded an average annual growth of 6% over the past six years and since 2018, the country exports services from countries such as Spain, United States, Chile, Netherlands and more. Strengthening the value supply aims to boost Bogota's positioning in global value chains, consolidating itself as an attractive destination for manufacturing and exporting goods with technological component.

Currently the capital's opportunities as a manufacturing nearshoring destination are due to positive factors such as its low-risk environment, geographical location, access to international markets by Free Trade Agreements (FTA) and domestic market.


Get to know the BPO sector in Bogotá

References:

  • https://tallyfy.com/what-is-nearshoring/
  • https://leanstaffing.com/blog/why-nearshoring-is-in-and-offshoring-is-o…
  • https://procolombia.co/noticias/covid-19/el-nearshoring-como-una-oportu…


 

Juan Fernando Anzola | Invest in Bogota
Author

Juan Fernando Anzola

Oficial de inversión Senior
Etiquetas
Nearshore
Nearshoring startegy
BPO industry

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