Over the last two years, there has been an acceleration in digitization coupled with greater economic pressures for increased cost effectiveness; forcing businesses in all sectors to rethink their strategies and work practices. Within this trend, IT nearshoring to Canada has become a key pillar of business operations for US companies as they embrace new ways of working. This business strategy has emerged as the preferred option for many companies who want the cost benefit of offshoring staffing solutions, without the workflow problems caused by having teams distributed across radically different time zones and cultures.
As COVID-19 aggressively integrated into our lives, there was a significant reshuffling of all industries, whereby companies took the opportunity to make new partners that brought in additional skills and experiences.
Over the last couple of years, Canada has become a favorable destination in IT nearshoring for US companies. With growing tech centers and less competitive labour markets, IT nearshoring to Canada enables US companies to connect with highly educated tech talent, while at the same time driving down business costs and increasing business reach.
With our similar laws, culture, taxation, expectations, and business hours, IT nearshoring to Canada is cost effective, maintains the same expectation of quality, and gives you the opportunity to increase the number of highly skilled U.S. workers collaborating at a much higher capacity with your Canadian counterparts. It is a win-win for both parties.
When your company is looking to expand to secondary markets, you want to ensure that your intellectual property is protected. Furthermore, compatibility with your nearshoring partner is imperative, and this attribute often stems from the ability to work collaboratively and communicate effectively. IT nearshoring to Canada eliminates the risks, complexities, and barriers to IT service delivery, that are often introduced by large geographical distances. Consequently, partnering with a company that is in the same time zone(s) and operates on the same business hours increases the likelihood of a successful partnership.
With this in mind, let’s dive deeper into the benefits of IT nearshoring to Canada:
Compared to the USD, the CAD has been in a steady decline since 2011, with no end in sight. Today, the exchange rate is $.77 U.S. = $1 CA. This means that by nearshoring to Canada, an American company saves approximately 25% – or they can spend the same amount and get nearly 25% more work for the same cost! This makes IT nearshoring to Canada a cost-effective strategy.
Vancouver, Toronto, and Montreal are the big tech hubs in Canada, all in close proximity to major American cities. In most cases, there is no time difference, making communication with nearshore staff extremely convenient. Additionally, 90% of Canadians lives less than 150 miles from the U.S. border and there are hundreds of daily direct flight options, allowing either party to travel with ease, when necessary.
Canada has a very skilled and highly educated native and foreign workforce. With talented and experienced IT professionals, Canada is a breeding ground for up-and-coming IT talent.
CULTURE of COLLABORATION
The United States and Canada exist together on many fronts such as in commerce, national security, entertainment, environment, energy, security, law enforcement, taxation, social justice, and much more. Canada and the US practice similar business accountability, formalities, and expectations, with comparable and progressive industries. T Moreover, both countries use English as their official language despite having other sub-languages in their respective countries.
Canada is a leader in cutting edge technology, business, and political stability. The undeniable cultural, geographical, and corporate similarities between our North American countries inherently makes for seamless business integration.
If you want to learn more about IT nearshoring to Canada, contact New Value Solutions today. …