Will nearshoring cause the end of globalization?

Will nearshoring cause the end of globalization
  • Home
  • Articles
  • Will nearshoring cause the end of globalization?

The ongoing trade war between the US and China, the COVID-19 pandemic, and the Russia-Ukraine war, unfortunately, exposed the weaknesses of the global supply chain. Doing business from one continent to another is more complicated than before. 

This means that the ecological myth of “globalization” — which has sought profits by removing trade barriers and seeking cheaper labor and resources — may be collapsing.

James Zhan, Director of Investment and Enterprises at the United Nations Conference on Trade and Development (UNCTAD), even stated that this decade will likely be “one of transformation for global value chains (GVCs), reshaping the global trade and investment landscape.”

What kind of evolutionary processes are businesses planning to thrive in this changing environment? 

Management consulting firm McKinsey & Company said that 71% of chief procurement officers (CPOs) are planning to increase their nearshoring share by 2025, with 24% considering nearshoring in the same market where it currently operates.

Companies, nowadays, are putting emphasis on consistent delivery no matter how expensive it is instead of cheaply procured labor.

Even the US government seems to be actively participating in the trend of creating this new nearshoring ecosystem, with the Biden administration putting emphasis on Central America and those involved with the CAFTA-DR (Dominican Republic–Central America Free Trade Agreement) deal.

With this in mind, experts are saying that nearshoring may put an end to offshore deals and globalization. 

Read more here.

Start your
journey today

  • Independent
  • Secure
  • Transparent

Access fantastic talent at world-leading prices

Scale your business fast while reducing costs —
the average all-in employment costs in the
Philippines are typically 70% less than its
Western counterparts

Philippines United Kingdom Australia United States
Software Developer
$7,221
$39,913
$62,653
$81,994
HR Manager
$9,506
$46,669
$66,518
$78,007
Team Leader
$7,152
$31,174
$45,428
$75,823
Accountant
$5,959
$58,479
$67,190
$72,923
Copy Writer
$4,767
$52,088
$56,600
$62,653
Customer Service
$3,337
$22,137
$29,717
$35,275
Virtual Assistance
$2,285
$39,066
$42,240
$31,797
Select a role to view salaries
Philippines $7,221
United Kingdom $39,913
Australia $62,653
United States $81,994

Avoid guesswork. Talk to the experts, free.

Get 3 free quotes

You can save 70% on staff costs, whilst driving quality & growth. Connect with an outsourcing expert to see how outsourcing can transform your business.

Why choose us?
  • Independent and unrivalled expertise
  • We carefully match you from 4,000+ leading suppliers
  • Access to Outsourcing Savings Calculator & Report

Get Started

How many staff to outsource?

About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 450+ podcast episodes, and a comprehensive directory with 4,000+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.