How Nearshoring IT Services Gives You Access to Top Talent

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The pandemic forced enterprises world over to fast-track their digital transformation journey.  As companies went digital, switched to remote work, restructured their businesses, and invested heavily in automation, augmented, and mixed reality, it has resulted in an increased demand for tech specialists, exacerbating the already existing talent shortage in the tech sector. In fact, McKinsey analysis shows a tech talent gap of 1.4 million to 3.9 million people by 2027 for EU-27 countries.

This requires a fundamental shift in how companies think about accessing tech skills and talent. One way is to expand the sourcing net, moving from familiar offshoring locations to wider tech-talent hubs closer to the client location. This is where Nearshoring comes in- the practice of outsourcing IT services to neighbouring countries. Working with a partner nearby means you can take advantage of the local IT talent to bolster your IT team and fill any skills gaps. There are also fewer cultural differences and it’s easier to communicate as you’re operating in similar business hours and time zones.

In the past, nearshoring was primarily driven by cost savings and the desire to reduce labour costs. However, today, companies are increasingly looking for nearshore partners who can provide high-quality services and access to top IT talent.

Harnessing top talent

Talent is now the most crucial factor in nearshoring. Having access to a pool of highly talented and experienced, professionals can lead to better quality outputs and faster delivery times for a company and give them a competitive edge.

The top tech skills typically required for nearshoring are product engineering, data and analytics and AI. As there’s an increasing IT talent shortage for these skills in Western Europe, nearshoring allows you to fill the skills gap and take advantage of talent from neighbouring countries by working with high-quality outsourcing partners.

From nearshoring technology operations such as software development, digital transformation and technical support, companies working in IT Automation, container technology and 5G, for example, are embracing nearshoring to tap into local talent, gain more strategic insight into local markets and respond quickly to customer requirements.

But when selecting a nearshoring destination, companies should first consider the talent pool available in the region, including the education system, training opportunities, and the availability of specialised skills.

Rise of tech nearshoring hubs in Eastern Europe

Following the pandemic, the tech industry has seen a shift in how we access talent. As talent is distributed across different countries, to access the right talent, it’s necessary to relocate work near the talent, rather than depend on the talent to relocate for work. So, to leverage highly skilled IT professionals, nearshoring companies are establishing centres in prominent talent hubs in Eastern Europe, like Poland, Romania, and Hungary.

These tech nearshoring hubs provide strong centres of expertise for companies. They work closely with local government and universities and offer high-level market knowledge and a range of IT talent and expertise providing a resilient and robust alternate workforce for companies. The hubs offer everything from customer experience and back-office operations to digital transformation and cloud migration. Furthermore, instead of working in siloes, as the traditional nearshoring centre used to, they integrate into a company’s operational structure and complement their core locations in areas like technology, domain skills and business continuity.

But before establishing a new nearshoring centre in this region, nearshoring companies need to ensure they have the appropriate middle management layer to serve as a conduit between managing local talent and international customers. To create this, they should invest in employees who will relocate to the country and act as a liaison to develop and grow the local team of talent, while managing customers’ requirements and expectations.

Your nearshoring future

This year more and more companies will take advantage of the top IT talent that nearshoring offers, enabling them to scale up their operations in a more value-driven and strategic way. As nearshoring partners have a highly skilled workforce, a deep understanding of the local market and can run your operations independently, this enables you to form a strong strategic partnership with them, rather than just outsourcing to save on costs. It also enables you to plug any IT skills gaps and save on hiring for specific technical roles internally.

So, by partnering with like-minded companies in neighbouring countries, you can access the right talent and create a strong partner ecosystem that will strengthen your operations, give you a competitive edge in the market and help build your future.