Return on Investment of Near-Shoring Projects

Authors

  • Jorge Guedes ISCTE Business Shool Portugal PhD Student at ISCTE Business School Program Manager at CAP Gemini
  • Leandro Ferreira Pereira ISCTE Business School Portugal
  • Renato Lopes da Costa Business Research Unit – BRU-IUL ISCTE - Instituto Universitário de Lisboa Portugal
  • Alvaro Lopes Dias Universidade Lusófona de Humanidades e Tecnologias ISCTE - Instituto Universitário de Lisboa Portugal
  • Rui Gonçalves ISCTE - Instituto Universitário de Lisboa Portugal

DOI:

https://doi.org/10.19255/JMPM02506

Keywords:

Project Outsourcing, Off-Shoring, Near-shoring, Business Transformation, Training, Services, Consulting

Abstract

The Information Technology sector has been using proximity offshoring (nearshoring) as common practice over the past 2 decades, mainly for software development projects. Using a large business transformation project from a global consumer goods company as a single case study, the present paper analyses the benefits and key challenges of incorporating such delivery models in these types of projects, focusing its attention mainly on the financial and quality aspects. The analysis suggests that, when compared to traditional services delivery (on-site consultants), near-shoring practices can have a very positive financial impact for the vendor and the customer, translating into an increase on the Return on Investment (ROI) without a significant increase of risks or losses in quality – The project’s cost can have a significant reduction on the vendor side, with a consequent reduction to the end client. Regardless these benefits, it is suggested that traditional consulting still plays an un-replaceable role in these types of projects. Furthermore, it is suggested that it is equally important the commitment from top management for such initiatives.

Author Biographies

  • Jorge Guedes, ISCTE Business Shool Portugal PhD Student at ISCTE Business School Program Manager at CAP Gemini

    Jorge Guedes is a guest lecturer at ISCTE Executive Education and a PhD researcher in Strategic Management in ISCTE Lisbon, being a visiting research student at the London School of Economics. He has several publications and is a regular keynote speaker in several universities in Portugal and the UK on the topics of Strategy, Digital Leadership and Digital Transformation. Additionally, he is a Certified Programme Manager with solid Programme Management and Digital Transformation experience. His experience was obtained while leading winning teams in several international engagements, translating business strategies into tangible value enabled by technology. In these experiences he played an active role in shortening the gap between Strategy and Execution, while advising his clients on future roadmaps with new age solutions, keeping their businesses ahead of the curve.

  • Leandro Ferreira Pereira, ISCTE Business School Portugal

    Leandro Pereira is a CEO and Founder of Winning Scientific Management, University Professor and Director of Master’s Degrees at ISCTE Business School, being also the President and Founder of the largest global association in the area of ​​Value Creation – the Business Case Institute – as well as Chairman of the Association for Strategic Planning for the Iberian market. Leandro Pereira is a training specialist for the auditors of the Court of Auditors for the areas of economic and social value creation and for management auditing.

  • Renato Lopes da Costa, Business Research Unit – BRU-IUL ISCTE - Instituto Universitário de Lisboa Portugal

    Renato Lopes da Costa. PhD in General Management, Strategy and Business Development by ISCTE (Portugal) has articles published in several specialized journals in the East, the United States, Canada, Africa, South America and Portugal. He is currently a researcher and member of BRU-UNIDE and a professor at INDEG where he holds the post of director of the MScBA (Master in Business Administration) and guides students in the development of master's and PhD theses. Teaches business strategy modules in executive and post-graduate master's degrees. Since 2013 he has also accumulated teaching duties as an invited professor at the Military Academy where he teaches the Knowledge Management.

  • Alvaro Lopes Dias, Universidade Lusófona de Humanidades e Tecnologias ISCTE - Instituto Universitário de Lisboa Portugal

    Álvaro Dias is Professor of Strategy at Instituto Superior de Gestão and ISCTE-IUL, both in Lisbon, Portugal. He got his PhD in Management from Universidad de Extremadura, Spain, after an MBA in International Business. Professor Dias has over 24 years of teaching experience. He has had several visiting positions in different countries and institutions including Brazil, Angola, Spain, Poland and Finland. He regularly teaches in English, Portuguese, and Spanish at undergraduate, master and doctorate levels, as well as in executive programs. Professor Dias has produced extensive research in the field of Tourism and Management, including books, book chapters, papers in scientific journals and conference proceedings, case studies, and working papers.

  • Rui Gonçalves, ISCTE - Instituto Universitário de Lisboa Portugal

    Rui Gonçalves holds a PhD in Management from Instituto Superior de Economia e Gestão, with research in information systems for operational risk management, a Master in Statistics and Information Management from NOVA Information Management School (NOVA IMS), with research in the area of Intelligent Agents, and a degree in Business Management from the International University. He is currently a Guest Assistant Professor at NOVA IMS and works as Manager in the Business Expertise division at SAS Portugal. In recent years, he has coordinated the areas of Operational Risk, Compliance, Fraud, Audit and Money Laundering.

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Published

2022-05-20

Issue

Vol. 8 No. 3 (2021): The Journal of Modern Project Management

Section

Articles-JMPM

License

Copyright (c) 2022 Jorge Guedes, Leandro Ferreira Pereira, Renato Lopes da Costa, Alvaro Lopes Dias, Rui Gonçalves

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

How to Cite

Return on Investment of Near-Shoring Projects. (2022). The Journal of Modern Project Management, 8(3). https://doi.org/10.19255/JMPM02506

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