Nearshoring describes the process to offshore some business activities to geographically close destinations. It is from utmost importance for firms to choose their offshoring destinations in a way that ensures cost efficiency but as well maintains work flows across borders. Thus, it is not sufficient to consider simple cost factors but as well a wider range of factors, such as institutional or social factors when choosing nearshoring locations.

The International Management Institute, the Center for Global Competitiveness and the trade associations swissICT and Information Security Society Switzerland (ISSS) as implementation partners have investigated the nearshoring trend more closely. The focus is on the country selection process from the perspective of Swiss IT companies and the underlying attractiveness of various regions of Europe as the location for an IT service center.

As a result a SML Center for Global Competitiveness IT Service Nearshoring has been created. Based on various parameters it provides a deep insight into potential nearshoring destinations and their advantages as well as disadvantages. The IT Nearshoring Index helps firms in their nearshoring decision. It combines a wide range of factors to one overall nearshoring index. Firms can use this a guideline to focus their due diligence on a narrow range of locations. Of course, the Center for Global Competitiveness supports firms in their nearshoring process by offering a holistic approach. We consult firms to find out key factors for their offshoring decision and adjust the nearshoring index accordingly. This firm-specific and personalized nearshoring index is more able to pin down optimal nearshoring locations. Moreover, we support firms in the location due diligence by providing location risks assessments. The Center for Global Competitiveness will update the IT Nearshoring Index annually, which allows analyzing nearshoring trends.