With stringent government cuts imminent, we have seen the likes of Northamptonshire and Cambridgeshire County Councils sign long term framework deals for the services of an ITO provider, worth between £23.5 million and £70.5 million for IT services. With many of these services certain to be offshored to destinations far and wide, the classic offshoring vs. nearshoring debate is reemerging.

While one cannot deny it’s benefits, offshoring is not necessarily the best strategy for local government, and careful consideration needs to be taken before any rash decisions are made. Some councils are just not suited for offshoring, with aspects such as staffing and local culture posing obstacles that could cause more harm than good. Furthermore, for certain tasks, offshore staff will simply not have the level of skill and knowledge required to complete the necessary local activities.

Therefore, it is my view that nearshore outsourcing has a lot of benefits compared to offshore outsourcing for local government. The outsourcing solutions provided by the near countries such as Ireland to their customers will not have much difference in their time zones and thus can provide services in the same time zone as their customers do. It also helps to avoid problems that can evolve due to language, culture, legal affairs, infrastructure and technology. Furthermore with nearshoring, cost effective structures are available, so it becomes less expensive and easier to travel and communicate for the customer.