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All About Nearshore Software Development Services In 2022


All About Nearshore Software Development Services In 2022

Outsourcing is a global trend today. Many software giants across the world leverage outsourcing to save time, money, and effort. If a particular company doesn’t have certain software skills it outsources the work to professional outsourcing firms or freelancers. This allows them to focus on their core competencies. So, they can specialize in their skills and become better at what they do. Over time the outsourcing model has matured and will only get more productive, efficient, and effective in the future. The outsourcing firms in the global market have fine-tuned their outsourcing skills for years. So, you can safely rely on them to get the job done.

There are three main software development outsourcing models followed worldwide today


  • Onshoring

The software development project is outsourced to a company in the same country. For example, within the USA itself.

  • Nearshoring

In nearshoring software development is outsourced to an outsourcing firm or a freelancing team in a nearby nation. For example, a US-based firm outsources work to firms in Canada or Mexico. Another example is a Western European company delegating work to a firm located in Central Europe.

  • Offshoring

The outsourcing company is located in a country with significantly different time zones. For example, outsourcing projects from the US to India comes under the category of offshoring.


Major Advantages of Nearshoring


  • Same Culture

Cultural similarities make it easier for entities to evaluate the nearshore software development staff’s thinking process, organizational structure as well as work ethics. Also, it becomes easier to communicate and work together.


  • Get access to human resources beyond your capacity

It is a great idea to handle more workload than what you have in your company offices. You can hire multiple teams and accept bigger and more projects. This allows a business to operate beyond its physical capacity and locations. Also, growth would see an exponential rise. The nearshoring team will bear the cost of office rent and their respective employee salaries. So, a business can offer better margins and values to potential customers.


  • Ease of communication

The nearby countries often speak the same language as that of the outsourcer. Communication is vital to achieve project goals, resolve tricky issues and convey important messages effectively.


  • Ability to have company and project meetings on the same day

Since the countries are close by, stakeholders can travel by flight and reach in a short time the nearshoring firm’s physical location to discuss project-related issues. In the nearshoring model, travel expenditure is less compared to the offshoring model where a long journey is involved. As you probably know, face-to-face meetings are more effective and productive than telephone calls or virtual meetings.


  • Save Money

Nearshoring is more profitable than onshoring if the nearby country’s salaries and real estate-related costs are lower than the country from which the software project is outsourced. A good example is outsourcing from Western Europe to Ukraine or Estonia.


  • Not much difference in time zones

Unlike offshoring where the working hours of one entity are the sleeping hours of the other entity and vice-versa, in nearshoring the collaborating organizations don’t have much difference in time zones. As such a phone call or a virtual meeting can be conveniently arranged if the need be. This significantly boosts the chances of achieving desired business goals and on-schedule delivery of the software product/service.


Having close time zones help avert excess expenses, enables nearly real-time communication as well as minimizes employee fatigue.


Disadvantages of Nearshoring


  • Lack of talent pool

The nearby country may not have many skilled software professionals. Then offshoring is a better option.


  • High Cost

If the living standards of the nearby country are high the project cost would not be much different than executing it in the home country.


  • Need for monitoring of project

The company just cannot give full control of the software project to the nearshoring firm. They will have the burden of monitoring the project at regular intervals.


Qualities of an Ideal Nearshoring Firm


  • Scalable Software Development Team

Depending upon the size and complexity of the software project, there would be requirements for the different numbers of personnel. It is important to know the nearshoring firm’s hiring process and the CVs of each team member. This will help you gauge the capability of the nearshoring firm to successfully deliver the goods.


  • Facility and convenience of communication

Ask which project management platform the nearshoring firm uses. Simultaneous collaboration on software development projects is a very important requirement. Also, you may be sharing confidential information such as business processes and secrets, a list of customers, and others. Ask whether the firm is ready to sign a legally binding Non-Disclosure Agreement before the commencement of the work.


  • Technical Experience and expertise

Request resumes of each member of the assigned software development team. Speak to the key members to evaluate their technical knowledge. Evaluate soft skills such as leadership skills, interpersonal skills, and communication skills. Ask questions about the complexity, technology used, and the challenges faced by them in previous software projects.


  • Affordability

Don’t make the mistake of hiring the cheapest nearshoring firm. They may be compromising on the level of quality which will jeopardise the project. Go through many potential nearshore providers and compare them on price and quality. The time and effort invested will yield manifold returns in the long run.


  • Company Culture

This allows a stellar comfort level while working together. Working together becomes easier and more familiar when the collaborating organizations share the same work values. Examples include respecting the views of all including the juniors, meritocracy, transparency, dedication, punctuality, and honesty.


About Us

Focaloid is a stellar software development services and products company catering to clients in the US & UK. Over time we have established a mature outsourcing model which is productive, efficient as well as effective. You can safely rely on us to deliver outstanding software solutions and services within stipulated deadlines. Contact us at the earliest to know how we can help you. We are committed to superior client satisfaction and mutual growth.


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