Complete guide to Nearshore Custom Engineering services

Between 1980 and 2010, Offshore outsourcing was widely used. However, Offshoring is becoming less common due to complex transportation logistics, complex projects requiring technical expertise, project management, different time zones, and overall costs.

As a manufacturer, consider the option of nearshore engineering outsourcing. With technological advancements, economic shifts, and the impact of the pandemic (including a shortage of technology talent), Nearshoring is gaining popularity. Organizations are turning towards Nearshoring to keep up with technological progress and innovation and to ensure better security, cost, and project management.

In this article, we explain:

• Nearshore vs. Offshore vs Onshore
• What are Nearshore Custom Engineering Services?
• Is Nearshore Engineering Development the ideal solution for OEM?  
• Is nearshoring to Canada the right solution for your OEM?

Nearshore vs. Offshore vs Onshore

Nearshoring, Offshoring and Onshoring are the three most common outsourcing models. To understand what Nearshoring is, we’ll start by demystifying the three forms of outsourcing and attempt to explain why organizations today are turning to Nearshoring to improve innovation, project cost and management.

First, the terms nearshore, offshore, and onshore refer to the location and relationship of outsourcing partners to the client’s country:

• Onshore outsourcing means hiring services within the same country as the clients. This model offers the advantage of no language or significant time zone differences and often a better cultural alignment.

• Nearshore refers to outsourcing to countries that are geographically close to the client’s country, often sharing similar time zones and cultural traits. Nearshore outsourcing can balance cost savings and convenience in communication and travel.

• Offshore outsourcing is when services are sourced from distant countries, often with significant time zone differences. This option can be more cost-effective due to lower labor costs in the service-providing country but may present challenges in coordination and communication.

Each outsourcing method has its advantages and disadvantages. The choice must be made according to each company’s needs and situation. When considering the right type of outsourcing for your project, there are three key factors to consider:

1. The cost implications of hiring in-house staff versus outsourcing the work
2. The level of expertise that is required to complete your project
3. Your ability to be flexible and integrate an external team with your existing one.

What are Nearshore Custom Engineering Services?

Nearshore custom engineering services refer to an outsourcing strategy where a company collaborates with a development team in a nearby country or region. This approach is chosen to take advantage of geographical proximity, cultural affinity, and often similar time zones, which can facilitate communication and collaboration.

The primary benefit of this approach is that it allows companies to keep up with technological progress and innovation without going through the hiring process, thereby gaining access to experience and expertise and getting to market faster.

It is generally preferred for its balance between cost-effectiveness and the convenience of working with an experienced team in relative proximity.

Is Nearshore Custom Engineering Services
the Ideal Solution for OEM? 

The high-tech talent crisis has led to an increase in outsourcing needs. It has become challenging for companies, such as OEMs, to have in-house staff with all the necessary technical skills. As a result, OEMs from various industries have outsourced complex tasks, such as driver assistance, connected homes, remote and continuous health monitoring, and engineering information management. This helps them leverage technical capabilities and get to market faster.

This article discusses how Original Equipment Manufacturers (OEMs) are responding to high-tech talent shortages. It aims to provide insights into the strategies and initiatives, including nearshoring, that OEMs are employing to attract and retain top-notch talent in the current competitive job market.

How OEMs respond to high-tech talent shortages.

However, how do you determine whether an external engineering services provider is a good fit for your organization? To answer this question, you need to consider several factors, including the necessary technical skills, the level of communication required, and the degree of flexibility you require from your partner. If you are wondering about this question, we have created a complete blog post on “Engineering Outsourcing: 6 Key Considerations.”

Is Nearshoring to Canada the right solution for your OEM?

Since nearshoring has become increasingly crucial for businesses today, US companies are now hiring Canadian IT talent for various reasons, including cost, expertise, proximity, and tech talent shortage.

 Let’s explore the main benefits of nearshoring to Canada.

Time zone difference: The United States and Canada share the same time zones as they are located next to each other. Overlapping time zones make it easier for companies to participate in cross-border collaboration and video conferencing. If you have a team of software developers working for you simultaneously, it will be easier for your team to collaborate during working hours.

Geographical proximity: One of the significant advantages of working with Canadian developers is the closeness in time and distance. Canada’s three major technology hubs, Montreal, Vancouver, and Toronto are close to some of the largest US cities.

Similar work culture: When choosing offshoring, you often face language barriers, time differences, and different legislation. However, with nearshoring, you will have no such concerns. There are no significant time differences, and the ability to communicate easily with your team throughout the day.

Canadian expertise: The major tech hubs in Canada keep evolving with the emergence of many tech startups and innovation hubs, providing developers with access to the latest technology developments and tools in AI, FPGA, IoT, augmented reality, and more.

Business culture: law similarities and political stability in Canada make outsourcing more straightforward and more cost-effective than in-house development.  Nearshoring allows you to significantly reduce operating costs while efficiently working with the best resources.

Looking to fully leverage nearshoring for product development?

There is no one-size-fits-all model for engineering outsourcing. Whether you need access to talent with specific skills to speed development or to reinforce your in-house team for a unique project, engineering outsourcing may be the ideal solution.

Orthogone has a unique business model enables us to provide solutions and product development services to our clients using a team of highly skilled engineers. Our approach helps to address the issue of staffing shortages while also increasing the functionality and innovation of the products we deliver.

Looking to fully leverage nearshoring for product development?

Connect with Orthogone Technologies to stay ahead in tech.