Friendshoring in IT: What’s That??

In the world of global IT strategy, a new term has emerged: Friendshoring. But what exactly does it mean, and why is it relevant to the tech industry today?

What is Friendshoring?

Friendshoring refers to the practice of relocating supply chains, business operations, or IT services to countries that are politically and economically aligned with your own. This strategy prioritizes moving operations to countries with stable relations, shared values, and reliable governance. Unlike traditional offshoring, which focuses primarily on cost reduction, friendshoring emphasizes trust, stability, and long-term partnerships.

Why is Friendshoring Gaining Traction in IT?

The global IT industry has witnessed several disruptions over the past few years, from the pandemic to geopolitical tensions. These events have revealed the vulnerabilities of relying solely on cost-driven offshoring, particularly in regions with political instability or strained international relations.

Friendshoring addresses these risks by focusing on partners who share common economic and political values, ensuring a more secure and resilient IT operation. The IT sector, which depends heavily on seamless global collaboration, can benefit from this approach by maintaining business continuity and mitigating risks related to global uncertainties.

Key Benefits of Friendshoring in IT

1. Stability & Security: By choosing countries with political alignment and stable governance, companies reduce the risks associated with sudden changes in laws, tariffs, or international relationships.
2. Resilient Supply Chains: IT projects often rely on complex international collaboration. Friendshoring ensures that IT services are provided from countries that are less likely to experience disruptions due to political or economic tensions.
3. Trust & Transparency: Working with countries that have strong diplomatic ties fosters better communication, regulatory compliance, and data security, all of which are crucial for IT operations.
4. Ethical & Value-Driven: Many companies today prioritize corporate responsibility. Friendshoring allows businesses to align with partners who share similar values on issues such as labor rights, environmental standards, and ethical practices.

Which Countries Are Popular for Friendshoring?

In the IT space, countries like Poland and Portugal have become popular friendshoring destinations. These countries offer skilled workforces, competitive costs, and stable political environments, making them attractive alternatives to traditional offshoring hubs.

Countries within the EU or NATO members are often seen as ideal candidates for friendshoring because of their strong political and economic alignment with Western nations, ensuring long-term stability and mutual cooperation.

The Future of IT Friendshoring

As geopolitical uncertainty persists, more businesses are likely to turn to friendshoring as a way to future-proof their operations. For the IT industry, where trust, security, and reliability are paramount, friendshoring offers an appealing balance between cost efficiency and operational stability.