Near Shore Outsourcing

Since the mid-1990s, the delivery of outsourced services has seen some dramatic changes. These changes have brought about the evolution of service sourcing models - from a domestic delivery model into a global service delivery model.     According to IT industry experts, this evolution is irreversible. Offshore outsourcing has steadily gained credibility, not only as a vehicle to reach low cost labour pools, but also as a medium for faster time to market, better quality software, IT enabled services and accelerated innovation processes.

        Its relevance rests on the fact that industry players must adapt to a global labour force. Companies must make their investment decisions based on the capabilities of different vendors in different countries, as they evolve into a global service sourcing model.

    The Near Shore concept adapted by NearSoft is an alternative to traditional offshore IT solutions. The idea behind the concept is to leverage Bulgaria's proximity, cost structure and international trade agreements to provide European based companies with a convenient alternative.

    In a Near Shore model, service providers deliver services from an adjacent or nearby country. The fundamentals of the model are (as with the offshore model) to leverage lower cost structures and achieve higher productivity by focusing on specialization and quality initiatives.

    The model also takes advantage of proximity and international trade agreements, such as the EU association treaty.

    The Total Cost of Engagement (TCE) for Near Shore projects encompasses personnel costs, the expenditure associated with physical and system infrastructure, telecommunications, travel, adjusted costs for risk and productivity differences, as well as management overheads. The overall Near Shore TCE is invariably lower than its offshore equivalent.