Is nearshoring better than offshoring for IT outsourcing?

Traditionally India has been the outsourcing destinationexperts working with the developers and that helps to
for IT projects. These days there is a lot of discussionget a clear understanding of the requirements. India
about inshoring i.e. outsourcing done domestically. It isalso has a good number of leads and managers who
also argued that nearshore locations like centralhave either studied or worked in the US or Europe and
Europe make great outsourcing locations for Europeanhave a pretty good understanding of the cultural
companies. Is that true?background there.
Language proficiency, cultural similarity and frequent- Onsite Visits: Most Indian vendors have Program
face-to-face visits are the advantages commonlyManagers, Account Managers, and Business
cited for inshoring or nearshoring. Let's evaluate eachDevelopment Managers permanently located in the
of these aspects in terms of outsourcing to India.client region and sometimes even in the client office if
- Language Proficiency: India has a sizable Englishthe project is large. Also project managers or tech
speaking population. You will find your India team prettyleads from the vendor visit their clients for gathering
conversant in English. At times, you are likely to findrequirements from business users, understanding the
grammatical mistakes or expressions like "today night"complexities, kicking off new projects or for
instead of "tonight", nevertheless the message getsdeployments. Although these visits are common in the
through. You will be able to communicate what youvarious phases of the project, technology these days
want and understand the replies easily.has enabled to cut down the need of frequent visits,
- Cultural Similarity: Indian IT and BPO companies workthus reducing the travel cost. Regular status calls,
in the global market and have been servicing clients inperformance reviews and milestone reviews are
the US and Europe for more than a decade now. Theeffectively done over teleconference. Virtual Meeting
work culture is aligned to the US and Europe; and thetools and screen sharing technologies have made life
offshore teams have a good understanding of theirsimple and VOIP has cut down the communication
client's culture and expectations. Many companiescosts enormously.
have SME's (subject matter experts) and functional