Over the years the concept of outsourcing has been constantly shape-shifting, to meet the needs of the current globalization era. This practice has been trying to fit into different business models and help enterprises leverage optimal benefits from resources.
In today’s fiercely competitive business landscape, enterprises are finding ways to increase product volume and service efficiencies, without increasing expenditure on additional resources. The new strategy that is helping businesses in this endeavor is the concept of Smart-shoring.
What are shoring models?
Breaking down the various shoring models:
Onsite: As the name suggests, it means working onsite (client’s office) for a given period of time. For example, when an Indian solution provider (or staffing firm) sends their team of skilled professionals to work in a United States company (the client) for a period of time is called onsite delivery.
Offshore: When a US company hires professional workers from overseas, many time zones removed from their central headquarters, to work on a project is called offshoring. Here, the professional team will work from their own locations. For example, an American software firm in New York, working with programmers in India or Romania.
Nearshore: Nearshoring is the practice of transferring business processes to nearby countries instead of distant locations.
What is Smart-shoring?
Smart-shoring is a method of getting the work done from price-competitive locales without compromising on product or service quality. The aim is to cut down on operational costs by carrying out business processes through a network of connected global operational centers.
Instead of taking a single approach, Smart-shoring combines different shoring models within one business process. The business workflows are broken down into different components after which the shoring model is decided. The whole workflow is controlled through a unified technology platform.
In simple terms, Smart-shoring refers to providing sustainable solutions to clients by using combinations of different shoring models.
How is Smart-shoring helping enterprises?
While other shoring models deliver several advantages, smart-shoring has its unique benefits. Unmatched flexibility and the liberty to distribute workflows as per one’s budget and quality preferences are two important factors that have made Smart-shoring the most preferred shoring model in the modern business landscape.
Benefits that businesses can leverage through Smart-shoring:
- High-speed workflow execution
In the current business scenario, especially the ongoing pandemic has created a greater need for agility. While cash crunch is becoming a universal challenge, businesses are under pressure to execute workflows quickly and efficiently. Smart-shoring is helping companies manage workflows with efficiencies like never before.
- Lower operational cost
Smart-shoring is considered to be a truly cost-saving model. By bringing in the best of multiple shoring models, businesses can save enormous operational costs through intelligent prioritization and workflow distributions.
- Efficiently balance workloads
Workloads can be shifted quickly and easily between various sites in the global network, thus delivering greater business agility and resilience.
- Manage regulatory compliances
As smart-shoring draws in the best advantages of offshore, nearshore, onsite, and onshore models, regulatory issues and other related bottlenecks can be avoided.
Combining differing shoring models into one business model is the most optimal approach for enterprises of today. Smart Shoring allows companies to address the different pain points that enterprises face when trying to allocate resources resulting in increased productivity and quality of output.
Netlabs Global has a well-constructed smart-shoring process that can provide the right kind of expertise for your business. Drop us a line today to know more.