Why nearshoring is a leading delivery model for finance and accounts payable

Finance and accounts payable teams need support that scales without slowing collaboration. Nearshoring combines access to skilled talent and cost efficiencies with real-time communication across aligned time zones. 

Key takeaways 

• Nearshoring gives finance and accounts payable teams access to skilled talent in nearby time zones, supporting real-time collaboration with onshore teams. 

• High-volume, standardized work such as invoice processing, cash application, and month-end close can be well suited to a nearshore delivery model. 

• The right delivery model depends on factors including process maturity, risk, talent needs, cost, and service quality. 

Finance and accounts payable functions combine high transaction volumes and standardized procedures with frequent interaction among internal stakeholders and vendors. That combination makes the choice of delivery model especially important. 

Nearshoring gives organizations another option as they determine where and how that work should be performed. Alongside onshore and offshore delivery, it can help finance leaders match different processes and business needs with the right delivery approach. 

What is nearshoring, and why is it becoming a leading delivery model for finance and accounts payable? 

Nearshoring is a delivery model in which a company relocates or outsources work to a nearby country, often in the same or a similar time zone. By comparison, onshoring keeps work in the company’s home country, while offshoring moves work to a more distant international location. 

The nearshore model gives organizations an opportunity to evaluate their processes and workstreams and determine which activities could move to a nearby team. Finance and accounts payable is a strong candidate for nearshoring because of several characteristics: 

• High transaction volume. Invoice processing, payment processing, and related activities can generate significant volumes of recurring work.  

• Standardized procedures. Many finance and accounts payable activities follow defined, repeatable processes.  

• Frequent interaction. Finance and accounts payable teams regularly communicate with internal stakeholders and vendors, making real-time collaboration an important consideration. 

With teams working in nearby time zones, nearshoring can support frequent communication while providing the benefits of an external delivery model. 

What are the biggest benefits of nearshoring finance and accounts payable? 

Nearshoring can give finance and accounts payable teams access to skilled talent, cost efficiencies, real-time communication, and opportunities for technology-enabled process improvement. 

Time zone alignment and real-time collaboration 

Nearshore teams in the same or similar time zones as onshore teams can collaborate in real time. Meetings and conversations can happen during shared business hours, which helps teams stay connected throughout the workday. 

Access to skilled talent 

Nearshore markets create access to professionals with accounting education, finance certifications, and shared services experience. These talent pools can offer skills that align with the needs of finance and accounts payable functions. 

Cost efficiency 

Nearshoring can provide lower labor costs compared with onshore delivery while creating opportunities to reduce facility and operating expenses. Offshoring can offer similar cost advantages, making both models options for organizations evaluating ways to manage costs. 

Communication 

Aligned business hours make it easier for onshore and nearshore teams to communicate. That can be particularly valuable when the work requires frequent meetings or ongoing coordination between teams. 

Digital transformation and automation 

Nearshoring creates opportunities for improving processes automations. At Highspring, nearshore teams can connect clients with broader AI and technology expertise to support technology and process improvement initiatives. 

What finance and accounts payable capabilities are best suited for a nearshore delivery model? 

High-volume, repeatable activities with clear procedures can be strong candidates for a nearshore delivery model. Common finance and accounts payable use cases include: 

• Accounts payable. High volumes of invoice and payment processing make accounts payable well suited to nearshore delivery.  

• Accounts receivable support. Nearshore teams can provide additional support and greater efficiency for accounts receivable processes.  

• Cash application. Nearshore teams can support cash application activities.  

• Vendor management support. Managed services teams can take on vendor management work that can require significant time from onshore resources.  

• General ledger and month-end close. Repetitive record-to-report activities can create opportunities for standardization and transition to a nearshore team.  

• Fixed assets accounting. Nearshore teams can also support fixed assets accounting.  

• Travel and expense processing. Nearshore teams can support processing as well as auditing work for correctness and completeness. 

Nearshore support also doesn’t have to stop at transaction processing. Depending on the work, teams can perform review and audit activities as part of the delivery model. 

Featured case study

Elevating AR collections through nearshore managed services

A renewable energy provider needed to stabilize and scale its accounts receivable collections while addressing high turnover, rising labor costs, and inconsistent service delivery. Highspring launched a dedicated nearshore team in Trinidad to support collections and customer service, then expanded the program as demand grew. The approach strengthened operational stability, cost efficiency, and the customer experience while extending service coverage and adding bilingual support. 

Read the full case study

How does nearshoring compare with offshoring finance models? 

Nearshoring and offshoring have plenty in common. Both give organizations access to skilled teams and lower labor costs than onshore delivery. The differences often come down to what the business needs from the work and its delivery team. 

Nearshoring can be a strong fit when frequent communication with the onshore team is important. Similar time zones support real-time collaboration and ongoing dialogue throughout the workday. 

Offshoring can be particularly effective for high-volume transactional work, delivering strong efficiency and productivity across standardized procedures. Offshore teams can also improve and tailor procedures to a client’s processes. 

Cost can determine the right approach. When lower cost is a primary consideration, offshoring may be an optimal fit. When frequent communication and time zone alignment are priorities, organizations may want to consider nearshoring. 

Neither model is better across the board. The right choice depends on the work and the organization’s priorities. 

What should finance leaders consider when deciding whether nearshoring is right for their organization? 

Finance leaders evaluating nearshoring should start by looking at the realities of their organization. Process maturity, risk, scope, talent needs, and service quality all help determine whether a nearshore delivery model is the right fit. 

Process maturity and standardization 

Consider how mature and standardized each process is. Well-defined, standardized work that requires fewer judgment calls may be easier to transition. 

Risk 

Evaluate the level of risk within each process, including where the work requires judgment calls. This assessment can help leaders determine which activities are appropriate to transition. 

Scope 

Rather than evaluating one finance function in isolation, consider the broader scope of work. An organization beginning with accounts payable, for example, can also assess opportunities elsewhere in finance and determine whether a phased approach makes sense. 

Talent and resources 

Consider the current onshore team alongside the talent available through external delivery models. Upcoming retirements, replacement needs, cost considerations, available skills, and development opportunities can all factor into decisions about where work should be performed. 

Service quality and business outcomes 

Cost matters, but it shouldn’t be the only consideration. Finance leaders should also evaluate service quality, business outcomes, and the provider they’ll be working with. The lowest bid doesn’t necessarily provide the level of quality an organization needs, and cost savings alone may not justify a broader transformation. 

Ultimately, finance leaders should make deliberate choices about which work to transition, which resources to keep in-house, and which delivery partner best supports their organization’s needs. 

Find the right delivery model for your organization 

Nearshoring can give finance and accounts payable organizations access to skilled talent, cost efficiencies, and real-time collaboration across aligned time zones. For functions with high-volume, standardized processes and frequent communication needs, it offers a compelling delivery option. 

If you’re evaluating nearshoring for your finance or accounts payable operations, Highspring can help you assess your options and identify an approach that supports your business needs and long-term goals.