Over the past decades, the global business landscape has witnessed significant shifts in the way companies approach resource allocation and operations. The trend of offshoring IT support—outsourcing services to countries with lower labor costs—played a significant role in IT and IT support departments that sought to reduce expenses and maximize margins. However, a noticeable shift back to onshore resources is gaining momentum, suggesting a reevaluation of priorities among IT organizations. I’m seeing this trend growing in my conversations with potential clients. As of late, when organizations are considering their IT support models, the use of onshore resources has become a firm requirement. Several key factors contribute to this resurgence, highlighting why businesses are increasingly favoring onshore over offshore resources for their IT support needs.
Enhanced Communication and Collaboration
Effective communication is vital for successful business operations. Onshore resources offer the advantage of seamless communication due to cultural similarities, language proficiency, and time zone alignment. This reduces misunderstandings and improves collaboration, leading to more efficient workflows and quicker problem-solving.
Focus on Quality and Expertise
Onshore teams often bring specialized skills and a deeper understanding of local markets, which enable them to provide higher-quality support. Companies are recognizing that while offshoring may offer cost advantages, it can sometimes compromise quality and expertise. Working with a Managed Service Provider that provides local IT talent for onsite placement ensures access to skilled professionals who can deliver exceptional results that meet or exceed industry standards.
Increased Control and Oversight
Onshore resources, specifically onshore resources that are physically onsite where your end users work, can allow businesses greater control over day-to-day tasks and prioritization. With resources located onsite, companies can implement stricter oversight and maintain better control. This increased level of control translates to higher accountability and the ability to swiftly address issues that may arise or quickly pivot resources, focus, and attention to meet new priorities.
Strengthening the Local Economy
Companies are increasingly aware of their role in contributing to local economies. By investing in onshore resources, businesses help stimulate economic growth and create job opportunities within their own communities. This not only enhances the company’s corporate social responsibility but also builds goodwill among consumers who value local support.
Mitigating Risks and Ensuring Compliance
Offshore operations can expose businesses to various risks, including geopolitical instability, regulatory challenges, and fluctuating economic conditions in foreign markets. Utilizing onshore, local IT resources can result in services that are more readily available and predictable.
Technological Advancements and Remote Work
The digital revolution and rise of remote work capabilities have reduced the need for geographic proximity to a large extent. However, the demand for proximity in terms of cultural, language, and contextual understanding remains essential for fostering collaboration and improving the efficacy of IT support. Onshore IT resources provide the technological sophistication and cultural context necessary to deliver IT support and systems management services much more effectively than their offshore counterparts.
Conclusion
The return to onshore IT resources reflects a broader shift in priorities where businesses are valuing communication, quality, control, and agility alongside cost considerations. As companies navigate an increasingly complex global marketplace, the ability to respond promptly, communicate clearly and effectively, maintain high standards, and foster local economic growth is driving the resurgence of onshore operations. This trend underscores the importance of balancing economic efficiency with operational effectiveness and strategic foresight in today’s business environment.
In essence, while offshore IT operations offer cost advantages, the evolving priorities of businesses have led to a rediscovery of the inherent benefits of onshore IT resources, making them an attractive option once again.
Interested in utilizing local, onsite IT resources for your IT staff augmentation and support needs? CBIZ can help.
© Copyright CBIZ, Inc. All rights reserved. Use of the material contained herein without the express written consent of the firms is prohibited by law. This publication is distributed with the understanding that CBIZ is not rendering legal, accounting or other professional advice. The reader is advised to contact a tax professional prior to taking any action based upon this information. CBIZ assumes no liability whatsoever in connection with the use of this information and assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein. Material contained in this publication is informational and promotional in nature and not intended to be specific financial, tax or consulting advice. Readers are advised to seek professional consultation regarding circumstances affecting their organization.
“CBIZ” is the brand name under which CBIZ CPAs P.C. and CBIZ, Inc. and its subsidiaries, including CBIZ Advisors, LLC, provide professional services. CBIZ CPAs P.C. and CBIZ, Inc. (and its subsidiaries) practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations, and professional standards. CBIZ CPAs P.C. is a licensed independent CPA firm that provides attest services to its clients. CBIZ, Inc. and its subsidiary entities provide tax, advisory, and consulting services to their clients. CBIZ, Inc. and its subsidiary entities are not licensed CPA firms and, therefore, cannot provide attest services.