Nearshore IT services are becoming increasingly popular as businesses strive to find the right balance between quality and cost. The nearshore IT services market is expected to grow at a CAGR of 4.04% during the forecast period (2021-2025). The report analyses the current trends, drivers, and challenges within the nearshore IT services market.
It also provides market sizing and forecasts for the next five years. The study includes a detailed competitive landscape, which covers major players’ market share analysis and provides an overview of key strategies adopted by them to maintain their position in the market.
The global nearshore IT services market is expected to be driven by several factors, such as the rising demand for cost-effective IT services and the growing need for faster time to market.
In this blog post, we will look at the top 9 trends expected to dominate the nearshore IT services market in 2022. Keep reading to learn more!
What Are Nearshore IT Services
Nearshore IT services are the provision of IT services from a company in a nearby country, typically within the same time zone. This service delivery model is gaining popularity due to its many benefits compared to traditional offshore outsourcing.
Some of the main benefits of nearshore IT services include:
- Reduced communication barriers: When working with a nearshore team, there are typically fewer language and cultural barriers, which makes communication simpler and more effective.
- Increased flexibility: Nearshore providers are often more flexible than their offshore counterparts, making it easier to adjust project scope or timelines as needed.
- Improved quality: With reduced communication barriers and increased flexibility, nearshore teams can often deliver higher quality services.
- Lower costs: While nearshoring IT services are typically more expensive than offshore outsourcing, the overall cost savings can be significant due to the improved quality of work.
Top 5 Trends Nearshore IT Services to Watch
Nearshore IT services are becoming more and more popular each year. Here are the top 5 trends to watch for in 2022:
- The rise of Artificial Intelligence and Machine Learning
The rise of artificial intelligence and machine learning has had a significant impact on the nearshore IT services industry. More businesses are looking to outsource their Al needs to countries with lower costs and strong technical talent.
Mexico, for example, has emerged as a leading destination for Al outsourcing. The country’s well-educated workforce and proximity to the United States make it an attractive option for companies looking to take advantage of the latest technological advances.
In addition to Al, machine learning is becoming increasingly popular among businesses looking to outsource their IT needs. This technology area involves teaching computers how to learn from data without being explicitly programmed. Countries with strong engineering schools and large pools of talented engineers, such as India and China, are well-positioned to take advantage of this growing trend.
- The Increasing Importance of Data Security
As companies increasingly move their data and operations to the cloud, the need for secure and reliable nearshore IT services becomes more important than ever. By partnering with a nearshore provider that specializes in data security, businesses can rest assured that their confidential information is safe and sound.
Here are just a few reasons why data security is such an important trend for nearshore IT services:
- Data breaches are on the rise: According to a recent study by 1BM, the number of reported data breaches has increased by nearly 45% over the past year.
- Hackers are getting smarter: In addition to the increasing number of data breaches, the sophistication of hackers is also on the rise. Hackers are finding new ways to exploit vulnerabilities as businesses rely more on cloud-based solutions.
- Compliance requirements are becoming more stringent: With new regulations such as GDPR and the California Consumer Privacy Act (CCPA) coming into effect, businesses must be extra careful about storing and protecting customer data. Nearshore IT providers that specialize in data security can help companies meet these compliance requirements.
- The costs of a data breach are rising: In addition to the reputational damage that can result from a data breach, the financial cost of a breach is also rising.
- Data security is a top priority for customers: In today’s digital world, consumers are more aware of the risks associated with sharing their personal information online.
- The Continued Growth of Cloud Computing
The continued growth of cloud computing is having a major impact on the Nearshore IT Services market. Companies are increasingly looking to outsource their IT needs, and the cloud enables them to do so cost-effectively and efficiently.
Cloud services provide many benefits that are not available with traditional IT services. For example, with the cloud, companies can access the latest technology without making a large upfront investment. They can also scale to meet their changing needs and quickly and easily adapt to changes in business requirements.
The cloud is also environmentally friendly because it reduces the energy needed to power data centres. And it helps companies save money by eliminating the need for on-site IT staff.
- Continued Focus on Quality and Customer Service
Nearshore IT services are trending towards a continued focus on quality and customer service. The global economic slowdown has led companies to focus on their core competencies and outsource non-core functions.
This has driven the demand for nearshore IT services as companies look to take advantage of lower-cost resources while maintaining high-quality standards. At the same time, technological advances have made it easier for companies to work with remote teams, making it easier than ever outsource IT services.
And thanks to improvements in communication tools, it’s now easier for companies to work with nearshore teams and get the benefits of a local team without having to worry about cultural miscommunication or distance.
- Growth of Shared Services Models
Nearshore IT services are trending towards shared services models for various reasons. Firstly, shared services allow for the pooling of resources and expertise, leading to more cost-effective and efficient service delivery.
Plus, shared services allow organisations to tap into new markets and geographies by sharing existing infrastructure and capabilities. Finally, shared services help organizations to build collaborative relationships with their suppliers, leading to improved quality and innovation.
If you’re considering nearshore IT services for your business, it’s important to partner with a reputable and experienced provider. At Near Contact, we pride ourselves on years of experience delivering high-quality IT solutions to clients worldwide.
We are the best option for nearshoring IT Services. Contact us today to learn more about our nearshore IT services and how we can help you meet your business goals.