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Small Business Tech Via Nearshore Outsourcing

08 Aug Posted in Tech

The not-for-profit GroundReport journalism site posted a fascinating article on June 22 2016 discussing nearshore outsourcing as a possible correction of corporatism. The article very carefully makes the case that corporate environments occasionally need market corrections in the same way the Dow Jones and NASDAQ need them. GroundReport went on to say that nearshore outsourcing is one way corporate corrections are applied.


Now let us take that thinking one step further by considering the differences between the typical outsourcing firm and the corporate clients that this firm serves. Outsourcing companies, especially those in the technology sector, tend to be small businesses by comparison. They employ fewer than 100 people, and they have a tendency to specialize in one particular area rather than offering a virtual smorgasbord. That’s what makes them so different from their corporate clients.

GP - Small Business Tech Via Nearshore Outsourcing

As GroundReport so eloquently points out, corporations are monolithic operations that sometimes get too big for their own good. One of the results of size tends to be the corporation extending far beyond its core product or service to include things original company founders never intended. We can use the example of a local pizza shop to illustrate this phenomenon.


The local pizzeria might establish itself by selling only pizza and chicken wings based on a tried-and-true family recipe. As the restaurant grows and starts adding locations, owners may decide to branch out into other things. Before you know it, the pizzeria is now selling everything from fish dinners to pasta to baked goods. They lose their focus on pizza, and thus, neglect the very thing that generated their success. America’s corporations are falling into the same trap with greater frequency. Fortunately, nearshore outsourcing firms are springing up to take advantage of opportunities to do what their corporate clients cannot.


Small Business: The Past and Future


Nearshore outsourcing is to the corporate world what small business is to economics in general. Simply put, small businesses are the past and future of America’s economy because they employ the largest percentage of working adults. It is the small business that offers the kind of specialty consumers want. It is the small business that is most capable of providing authentic, focused customer care. It is the small business that binds communities together in a way that corporations never will.


In the technology sector, nearshore outsourcing firms offer the same fundamental benefits. For example, the total volume of outsourcing firms around the world employs more technology workers than corporate America. Each one of these firms offers a kind of specialized service their clients so desperately need. And in a world where corporations change hands frequently, outsourcing providers remain ready to provide services day after day, year after year.


Perhaps the author of the GroundReport story is on to something. The rise of nearshore outsourcing could very well be a market correction for corporate America. It could be that monolithic corporations are turning to outsourcing partners that can take some of the workload and allow them to return to the core products and services that made them successful. And if so, nearshore outsourcing proves that the backbone of any economy is small business.


The next 10 to 15 years should prove critical to the nearshore outsourcing model – especially in places such as Central and South America. Even as the bloom is off the rose for India and the rest of Asia, countries like Mexico, Brazil and Argentina are enjoying tremendous growth in technology outsourcing. How they fare in the future may eventually determine the fate of nearshore outsourcing as the dominant support vehicle of America’s corporations.