Staff Augmentation6 min read

Why Companies Are Turning to Nearshore AI

Learn why businesses are embracing nearshore AI to reduce costs, boost speed, and gain expert support. Discover real examples and see how this smart move is transforming operations.

Why Companies Are Turning to Nearshore AI

In the business world, fast-moving doesn't even begin to describe it; innovation can't wait. Companies need to find ways to stay ahead of the curve, cut costs, and remain flexible; that's where nearshore AI comes into play.

 

We're using the term to describe an AI team working in an “advantageous” location, close to their business partner. With nearshore AI, companies are finding that they're achieving faster results, better collaboration, and greater alignment with their business goals. In essence, nearshoring AI work is helping companies become more tech-driven.

 

Why AI Is a Priority

 

Today, artificial intelligence serves not only the technology behemoths but also organizations of all sizes across various sectors. Businesses, even those not traditionally seen as tech-oriented, are now investing vast amounts of money in artificial intelligence to achieve, and in many cases, already gaining a significant competitive advantage.

 

AI is operating in both the background and the foreground, automating many processes that humans once performed, such as customer service. The same group of AI systems, often fueled by vast troves of data, is capable of tasks such as predicting sales trends, personalizing the user experience across multiple platforms, and enabling a new generation of informed decision-making. In-house, full-time talent is crucial for building platforms that leverage AI to its fullest potential.

 

Real-World Example: Retail Personalization

 

A North American e-commerce brand sought to enhance its product recommendations for customers. To achieve this aim, it decided to work with an AI team located in Mexico. The AI team, which operates in a nearby time zone, enabled real-time adjustments to the product recommendation system, facilitated daily stand-up meetings, and fostered a highly interactive relationship with the client.

 

The e-commerce brand and the AI team, both located in Mexico, now share a unified work culture that enables immediate feedback and iteration during a recent project to deploy a machine learning model. This model uses browsing history and purchase behavior to make product recommendations.

 

Cost Efficiency Without the Trade-Off

 

Cost is one of the biggest reasons companies turn to nearshore AI. When it comes to hiring, AI talent can be scarce and even more expensive to acquire. Salaries, benefits, and overhead can add up to a staggering sum when you're trying to build a team to really capitalize on the power of this tech.

 

However, nearshore teams offer high-quality services at a price that can appear downright reasonable compared to those local hiring numbers, and many companies aren't taking advantage of nearshore AI simply because they don't understand the opportunity.

 

Faster Time to Market

 

Time is of the essence. In product or feature launches, the longer a company takes to bring something to market, the greater the opportunity for competitors to snatch away customers. Nearshore AI teams help firms move faster. The reason? A nearshore team can work in the same time zone as a business and thus within the same time frame.

 

This shared span of working hours translates into faster feedback, fewer delays, and an ability to hit deadlines that might otherwise be missed. Companies that utilize nearshore resources to develop their products (or product features) can respond quickly to various situations that may necessitate a product pivot.

 

Better Communication and Cultural Fit

 

Communication is crucial for any project to be successful. Nearshore partnerships benefit from their closeness; geographical proximity builds trust that far-off teams can't have.

 

Compared to far-off offshore teams, nearshore teams fit more naturally into a company’s day-to-day operations. They are far more accessible than teams in other time zones and understand the context far better; they also feel like an extension of the internal team when compared to distant teams.

 

Real-World Example: Healthcare AI Support

 

A U.S. healthcare provider required assistance in creating a natural language processing tool for extracting information from patient notes. Rather than sending the work abroad to a distant country, they teamed up with folks in Argentina. Due to the proximity and shared language, the teams could work together effectively virtually. In just six weeks, they delivered the first version of the tool, which helped doctors find patient insights faster and improve the accuracy of their diagnoses. The healthcare company was so impressed that they extended the partnership to explore additional AI-driven projects.

 

Scaling Without the Stress

 

When businesses expand, their technological demands also increase. Nearshore AI enables firms to expand their artificial intelligence operations without hiring a large number of new personnel. This method allows for fast upticks in AI work with none of the onboarding headaches that usually come with adding a significant number of new employees.

 

Businesses can fine-tune the amount of new nearshore help they need, ramping up or down easily based on current priorities. If anything, that is the sweet thing about nearshore AI: it is a workforce you can easily adjust to fit your current needs.

 

The Right Talent, Right Away

 

The worldwide AI talent pool is luring many of the brightest minds in artificial intelligence to work outside the United States. Nearshoring makes it much easier to access this talent, particularly in the countries that are becoming known as strongholds for technology and innovation.

 

Costa Rica, Mexico, and Colombia are nearshore havens ripe with AI talent. In fact, according to a Latin American market research report released earlier this year by the U.S. Department of Commerce, 95% of nearshore market participants believe AI will be a "game changer" for the region.

 

Long-Term Partnerships That Grow

 

Nearshore AI is not merely aimed at achieving immediate outcomes. Many firms develop long-standing alliances that deepen over time. As trust develops, these partnerships invariably grow in dimension.

 

The work they undertake becomes increasingly seamless. Not only is knowledge shared, but it is also continually updated and expanded. This is a big reason why shared workspace is seen as a desirable outcome of a nearshore partnership.

 

Getting Started

 

Beginning with nearshore AI does not have to be complicated. Set a clear business goal. What problem or area do you want AI to work on or better? Then, seek out a partner with experience in that exact type of business. Ask them for the same kind of assurance you would want from anyone doing your work: case studies, work samples, and a process they can describe in straight lines from beginning to end that also makes sense to you. Test them with a pilot project; move on if they cannot handle it, and proceed with them if they can.

 

Conclusion

Nearshore AI is more than a clever cost-saving tactic; it is a strategic approach to building better products, serving customers more efficiently, and staying competitive in a rapidly changing world. It brings together the power of advanced technology with the ease of collaboration.

 

Companies that turn to nearshore AI are not just outsourcing; they are investing in more innovative ways to innovate. With the right partner and the right mindset, the results speak for themselves. The future of business will be shaped by those who know how to adapt and move quickly. Nearshoring is one way to get there.

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