When it comes to outsourcing, sourcing to a company located in the same time zone is becoming increasingly popular. This type of sourcing is referred to as “same-time-zone sourcing” or “localized outsourcing.” In this article, we will explore the pros and cons of sourcing to a company in the same time zone and how it can impact your business.

Pros of Same-Time Zone Sourcing

Improved Communication

One of the biggest advantages of same-time zone sourcing is improved communication between you and the outsourcing team. When you’re working with a team in the same time zone, it’s much easier to schedule meetings and collaborate on projects in real-time. This means that you can get things done faster and more efficiently than if you were working with a team located in a different time zone.

Better Cultural Understanding

Another advantage of same-time zone sourcing is that it allows for better cultural understanding between you and the outsourcing team. When you’re working with a team in the same time zone, you can get a better sense of their culture and work style. This can help to prevent misunderstandings and foster a more productive and enjoyable working relationship.

Reduced Travel Costs

By sourcing to a company in the same time zone, you can also reduce your travel costs. When you’re working with a team located in a different time zone, it’s often necessary to travel for meetings or to visit the outsourcing team on-site. This can be expensive and time-consuming. By sourcing to a company in the same time zone, you can eliminate the need for travel and save money on transportation costs.

Increased Productivity

Studies have shown that working with a team located in the same time zone can lead to increased productivity. When you’re working with a team in the same time zone, you can get things done faster and more efficiently than if you were working with a team located in a different time zone. This means that your business can be more productive and profitable as a result.

Cons of Same-Time Zone Sourcing

Limited Availability

One potential downside of same-time zone sourcing is limited availability. When you’re working with a team located in the same time zone, there may be times when their availability overlaps with your own work schedule. This can make it difficult to coordinate projects and meet deadlines.

Higher Costs

While reducing travel costs can be a benefit of same-time zone sourcing, it’s important to note that it may also come with higher costs. Some companies in the same time zone may charge more than those located in other time zones, particularly if they are specialized or experienced in certain areas. This means that your business may end up spending more money on outsourcing than it would if you were sourcing from a company located in a different time zone.

Lack of Cultural Diversity

Another potential downside of same-time zone sourcing is the lack of cultural diversity. When you’re working with a team located in the same time zone, you may be missing out on the benefits of working with a team that has a diverse background and work style. This can limit your business’s ability to innovate and think creatively.

Overreliance on Technology

Same-time zone sourcing often requires heavy reliance on technology for communication and collaboration. While technology can be helpful, it can also lead to overreliance and a lack of personal interaction between team members. This can make it difficult to build strong relationships and foster a sense of community within the team.

Case Studies and Personal Experiences

Many businesses have successfully sourced to companies located in the same time zone, and there are numerous case studies and personal experiences that illustrate the benefits and drawbacks of this approach. For example:

A Marketing Agency Sourced to a Company Located in the Same Time Zone

A marketing agency based in New York decided to source to a company located in London to help with their SEO efforts. The two companies were in the same time zone, which made communication and collaboration much easier than it would have been if they were located in different time zones.

An IT Company Sourced to a Company Located in the Same Time Zone

An IT company based in Silicon Valley decided to source to a company located in Mumbai to help with their software development needs. The two companies were in the same time zone, which made it easier for them to collaborate and communicate in real-time.

A Small Business Sourced to a Company Located in the Same Time Zone

A small business based in Austin decided to source to a company located in Dallas to help with their marketing efforts. The two companies were in the same time zone, which made communication and collaboration much easier than it would have been if they were located in different time zones.

Expert Opinions and Research

According to a study by Upwork, 40% of remote workers feel more productive when working with team members who are in the same time zone. This is because it allows for better communication and collaboration, which can lead to increased productivity and efficiency.

Another expert, Michael Hyatt, founder of MichaelHyatt.com, recommends sourcing to a company located in the same time zone if you want to work with a team that is highly available and responsive. However, he also cautions against overreliance on technology and the importance of building strong relationships within the team.

Conclusion

In conclusion, sourcing to a company located in the same time zone can be a great option for businesses looking to improve communication, cultural understanding, productivity, and efficiency. However, it’s important to consider the potential drawbacks such as limited availability, higher costs, lack of cultural diversity, and overreliance on technology. By weighing the pros and cons and carefully considering your business needs, you can make an informed decision about whether sourcing to a company located in the same time zone is the right choice for your organization.