Near sourcing is becoming more relevant for US-based companies, and with good reason: it perfectly aligns the possibilities of today’s globalized economy with a budget optimization philosophy that our current environment demands.
In recent months, 30% of companies worldwide increased the aggressiveness of cost-reduction policies, due to the economic impact of the pandemic, according to a report by Deloitte.
So it’s no surprise that near sourcing has gained more popularity in recent years. It is a more affordable option than offshoring, which guarantees better quality standards than those in remote locations like India and other South Asian countries.
However, you must tread carefully when developing a nearshoring campaign. Even if this is the ideal business model for your company, it still demands an organized and strategically focused implementation.
For that reason, we prepared a series of valuable tips so you can fully leverage the advantages of near sourcing for your company.
If we’re talking about nearshore from the perspective of a company based in the United States, Mexico is the option.
The reasons are easy to understand: it is a neighboring friendly country with a rich shared history of business relationships with the US.
In Mexico, You’ll find excellent destinations for BPO such as Tijuana – just a 30-minute from San Diego – as well as thriving urban metropolises like Guadalajara and Mexico City.
Because of the proximity of Mexico to the United States, travel expenses are much cheaper than other countries, and executives are less likely to experience logistic complications; if they do, they’re easier to manage since the company’s headquarters are just a few hours away.
If we talk about pricing, companies near sourcing to Mexico can save up to 40% in costs related to business process outsourcing compared to what they would likely spend in the United States without sacrificing quality.
And the best part is that the top contact centers in Mexico prioritize putting highly qualified bilingual professionals in customer support under direct contract.
Clients from the United States are ranked among the most demanding globally since most are used to high-quality standards.
That’s why it’s not enough for customer service reps to know how to speak English; they also need to understand the way of thinking and expectations of someone from a different culture than theirs.
That is what bicultural identity is all about. It is the best way to ensure high client satisfaction by genuinely connecting with them. Instead of a cold and distant exchange, your customer support reps will be able to quickly gain the trust of a client and provide a top-tier experience.
Whenever you hire a BPO service, you need to be very clear about the results and productivity standards you will measure, especially if you’re moving operations to another country.
This measurement is one of the biggest challenges for managers and sales teams. They need to decide and evaluate the proper indicators for the type of product or service they’re providing. They also need to consider the essential details related to the market they’re operating in, such as:
These are the variables that set sales expectations. At the same time, service-level metrics – FCR, NPS, churn rate, etc. – depend more on the quantity of hired staff concerning traffic, support mechanisms, product quality standards, etc.
In short, you need to clarify what needs to be measured and update your company goals if necessary, so you can make accurate projections and establish a clear path forward.
In this discovery phase, you can lean on the BPO provider with whom you’re going to do near sourcing to receive timely and specialized advice.
Talking about putting everything in order, let’s not forget about setting up a SLA.
Usually, the service provider is in charge of preparing this document. Still, since you’re dealing with a company in another country, you must ensure that they make the SLA under the standards you know.
Mark out the responsibilities and expectations for your soon-to-have BPO team, the tasks you are willing to optimize, and other conditions you consider essential to sustain a long and productive work relationship with the service provider.
Then, with their help and as part of negotiations, the SLA could be optimized and adapted to the new criteria.
Let’s suppose you want your customer service to compete in the US market. In that case, you need to adopt the same quality standards in your nearshore campaign, even if the operation is located in another country.
Learn about the required certifications, and the quality criteria typically followed in the United States, and bring that information to the negotiations with your BPO service provider.
Luckily in Mexico, there are business process outsourcing organizations that are associated with companies in the US. This connection makes the process easier since said companies already follow high-quality standards.
Additionally, these high-profile companies provide disaster recovery plans (DRP) for their clients that guarantee unparalleled operational capacity and stable service at all times.
Thank you for reading! Now you know what to keep in mind when you’re preparing a near sourcing strategy.
These are the facts that will make or break a BPO project. If done right, you will effectively increase the operational capacity and provide top-tier customer support while keeping budget expenses low.
As you might have guessed, Mexico is the ideal market right now to do near source if you have a company based in the US. It doesn’t present the common pain points you would encounter if you offshore to another continent. It has plenty of qualified bicultural professionals ready to provide a great customer experience.
Now that you know the criteria to bring your operation to the next level with near sourcing. Don’t hesitate to contact us to receive more information that might interest you.
Hope to hear from you soon!