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How to Succeed with Near-Shoring

Near-shoring has become an increasingly popular strategy for companies looking to expand their talent pool, reduce costs, and improve efficiency. However, success in near-shoring isn’t guaranteed. To maximize the benefits and avoid potential pitfalls, it’s crucial to approach near-shoring strategically. Below are six key considerations to ensure your near-shoring journey is a success:


1. Define Your Objectives

Near-shoring is not an end goal but a means to achieve broader business objectives. Before embarking on this path, ask yourself: Why are we near-shoring?

  • Are you looking to broaden your access to talent?

  • Are you aiming to reduce operational costs?

  • Do you want to improve business continuity?

Clarity on your objectives will help shape your strategy, measure success, and communicate your goals to stakeholders.


2. Test Before You Invest

Near-shoring doesn’t have to be an all-or-nothing decision. Taking a gradual approach allows you to:

  • Learn as you go and adapt based on real-world experience.

  • Deliver value incrementally rather than betting everything upfront.

  • Course-correct and improve your processes to align with your goals.

Start with a smaller team or pilot project to validate your assumptions and refine your approach.


3. Pick a Good Partner

Near-shoring often involves navigating unfamiliar territory—both literally and figuratively. A trusted partner with expertise in the region can:

  • Guide you through compliance and legal requirements.

  • Help you navigate cultural nuances.

  • Provide ongoing support to address challenges as they arise.

Choosing a partner who knows the space and has a proven track record can make a significant difference.


4. Pick the Right Model for Your Needs

Not all near-shoring models are created equal. Selecting the right model depends on your specific requirements:

  • Consulting Model: Ideal for short-term projects or when you need temporary workers who don’t require extensive training or specialization.

  • Employer of Record (EOR): Better suited for long-term engagements, such as developing software products, where training, specialization, and employee retention are critical.

Consider your goals, timelines, and the nature of the work to choose the best-fit model.


5. Pick a Good Region

The region you choose can significantly impact your success. Key factors to evaluate include:

  • Talent Pool: Some regions have deeper talent pools but may also have more competition.

  • Time Zones: Collaboration is easier when your team operates in the same or similar time zones.

  • Language and Culture: Effective communication and cultural compatibility can improve team cohesion and productivity.

Every region has tradeoffs. Assess your priorities to find the best fit for your organization.


6. Pick a Partner That Will Help Where You Need Them

Even in a fully remote setup, near-shoring requires more than just hiring and paying employees. Your partner should:

  • Help you find and vet qualified talent.

  • Conduct thorough background checks.

  • Can help if/when you need them.

Look for a partner with in-depth knowledge of the target country and your industry. Their expertise can help you address challenges proactively and build a strong, successful near-shore team and handle contingencies as they arise


By carefully considering these six factors, you can set your near-shoring initiative up for success. At ChapinTech, we specialize in helping businesses navigate the complexities of near-shoring in Guatemala. With our deep knowledge of the local market and U.S.-based technology operations, we’re here to support you every step of the way.

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