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These days, the practice of hiring employees from a neighboring country who will work for lower wages is very popular. Large companies see it as an ideal alternative compared to paying higher wages to people they hire from their own country.
Such a practice is known as Nearshore Outsourcing or, in a simple definition, means having work or services performed in neighboring countries rather than in your own country. Like two sides at each corner, it has its advantages and disadvantages.
PRO
Nearshore Outsourcing offers the advantage of working in the same time zone, which is quite a critical element, especially when online interaction is necessary. At least no one has to stay up late or get up early; thus, reducing stress on both parties involved. The work happens at the same time and there is better coordination throughout the project.
Geographical proximity means travel is closer and less expensive, so companies can visit their outsourcing partners frequently. Furthermore, there are commonalities between the two cultures involved. Since both countries have similar cultural backgrounds, it would be easier to coordinate and communicate as their people most likely speak the same language; thus reducing the problems derived from cultural diversity.
Visa is an important consideration when traveling on business, as one may need to go from one country to another several times a year. As far as the countries near the coast are concerned, a visa is not necessary to travel. The only thing to make sure you have before boarding the plane is your passport and airline ticket.
Cons
A disadvantage would fall on the country of subcontracting. Most of the time, technical jobs are the outsourced positions, and as a result, there are fewer job opportunities for graduates of this field in the country. Also, there would be a lower pay scale because they are not competing with foreign workers who would do the job for a much cheaper labor cost.
Second, there is the issue of the possibility of copyright and patent violations in a neighboring country where such concerns may be difficult to enforce. Likewise, the issue of Information Security is also raised when it is passed to people from other countries since this may not be as strict and monitored in the country where it comes from.