Traditionally, the companies that rise to the top have been those willing to spend on high-quality workers, while the companies that fall behind often take financial shortcuts. In other words: Skimp on who you pay, and your company will pay for it.
In many cases that thinking still reigns supreme today.
However, as Amalga Group Founder and CEO Jens Erik Gould says, the recent boom in nearshoring has allowed companies to bridge the gap between cost-cutting and implementing innovative business solutions.
Companies in the United States can now seek out highly skilled nearshore workers while simultaneously prioritizing cost efficiency.
Below, Jens Erik Gould explains the shift from cost-cutting to nearshoring before detailing the benefits of hiring specialized nearshore teams.
From Cost-Cutting to High-Quality Innovation
Cost-cutting has long been a routine procedure across American businesses.
But in recent years, the rise of skilled IT workers in Latin America has led many companies to shift their attitude. They’re now focusing on nearshoring instead of cost-cutting because of the pure cost efficiency a nearshore strategy provides.
Making matters even more appealing is that there is no dip in quality amongst nearshore workers. As Jens Erik Gould notes, the talent pool in segments of Latin America has improved dramatically year after year. This talent pool is now so great that American companies often find workers who are just as talented (if not more talented) than workers in the United States. These companies then scale up operations without focusing on how much it will cost them.
The Demand For Specialized Skills
A cost-centric attitude brings with it a severe set of limitations. The same cannot be said for nearshoring, which allows for experimentation and innovation in the IT sector. Nearshore facilities are often equipped to handle the latest in digital transformation, with specific focuses on hiring specialists in computer programming, data management, automation, and artificial intelligence. According to Jens Erik Gould, this focus on acquiring specialized skill sets trickles all the way down to students in Latin America.
Students are increasingly undergoing apprenticeships, boot camps, and industry-university partnerships to adopt the qualifications needed to thrive in U.S. sectors. This leads to many workers already being ahead of the curve once they step into their respective industries.
Quality Leads to Competitive Advantage
Prioritizing quality in your workforce leads to several immense benefits, the first of which is an enhancement in innovative practices. By finding workers who are more locked into the specific challenges of their industry, you’re also finding workers willing to exceed norms and break technological boundaries.
On top of that, Jens Erik Gould maintains that the cost-effectiveness of nearshoring can help companies achieve a significant competitive advantage over their peers. You’ll find that the motivated and established workers in Latin America will help your company be more aligned with its business goals and more ready to achieve high-quality business outcomes.
It used to be true that cost-cutting was the norm among U.S. industries. But nearshoring has changed that. This strategic advantage allows companies to find the most skilled workers, innovate, and gain a competitive edge—all while maintaining cost efficiency.
About Jens Erik Gould:
Jens Erik Gould is the Founder & CEO of Amalga Group, a Texas-based nearshore outsourcing company specializing in providing highly qualified talent in IT, software engineering, and contact centers. Previously, Gould spent over a decade reporting on topics such as business, politics, and energy in the United States and Latin America for esteemed media outlets like Bloomberg News, The New York Times, and TIME.
Get the inside scoop on the advantages of nearshore outsourcing with our salary cost comparison guide. We break it down by jobs in software, tech, customer service, accounting, and legal support.
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