Sterling Report | Page 14

PROCUREMENT MAGAZINE WHITEPAPER
SECTION 4:

The“ Right Place” strategy – geographic and cultural alignment

The geography of outsourcing has undergone a radical realignment. The“ follow-the-sun” model is being refined into a“ Right Shoring” strategy, where time-zone alignment and cultural affinity take precedence over distance and cost.
We’ re witnessing a surge in nearshoring, with European companies increasingly favouring Central and Eastern Europe, as well as North American firms targeting Latin America.
Top Outsourcing Concern:

31 %

of UK clients cite“ language barriers and cultural differences” as their primary concern
Data from Auxis and Virtual Latinos confirms this preference for regions offering superior cultural affinity, business practice alignment and travel feasibility over traditional offshore models. Nearshore locations share closer linguistic fluency, business etiquette and communication styles with Western clients, reducing friction in collaboration. The geographical proximity also enables face-toface meetings when needed – something that remains valuable for relationship-building and complex problem-solving, despite digital collaboration tools. Beyond time zones, nearshore eliminates 10 + hour transatlantic flights between HQ and delivery sites while maintaining stronger brand recognition and cultural alignment – advantages buyers increasingly prioritise alongside agile, real-time problem-solving.
Coordea’ s industry analysis further emphasises that time-zone alignment, cultural fit and regional proximity are becoming more important than ever. sterling-outsourcing. com