Given the digital and technological landscape, we have today, software development is in higher demand than ever – this means the world needs more software engineers than ever. In fact, according to the Bureau of Labor Statistics, the software developers’ job market is expected to increase by 22% by 2029. But hiring and managing a highly competent software development team is not an easy job, as enterprises rely on such engineering teams to bridge the gap between them and clients from around the world. This is why, when a company is looking for help with its IT applications, outsourcing seems to be the number one option.
The good news is that outsourcing software development is more accessible than ever. There are many controversies and opinions surrounding nearshore and offshore software development. Thankfully, there is in fact a tried-and-tested solution that many organizations turn to when in need of new talent: outsourcing to a nearshore software company, which is also increasingly interesting and widely grown in the world.
Let’s take a closer look at what nearshore outsourcing development is and the benefits that make it stand out from the rest of the outsourcing models.
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What is nearshore software development?
Simply put, nearshore software development refers specifically to the practice of delegating some tasks — in particular, software development and business processes — outside of your home country but usually on the same continent. Somehow like offshore software development, but closer to your company’s headquarters. This can provide cultural proximity, a convenient location, and the same or similar language. But let us take one benefit at a time.
1. Lower costs
Probably you already had a guess that moderated costs would be among the benefits nearshore outsourcing provides companies. Nearshoring software development means you provide direction for the project, but you don’t necessarily need to assign priorities. Your outsourcer can do most of that instead. A good nearshore software outsourcer should have a large, dedicated team that can handle this.
With the massive hit, the economy took in 2020, reducing expenses is something most companies are looking for. Using a software company rather than hiring it internally saves acquisition costs, decreases HR costs, and distributes additional expenditures (including non-IT costs).
2. Similar time zones
Time zone compatibility is definitely one of the most significant nearshore outsourcing pluses for individuals managing an external team. Cities in Europe, for example, have a time variation of about one or two hours, but working in markedly different time zones can result in communication delays, which can lead to frustration and strained relationships, as one team might constantly feel one step ahead of the other. Outsourcing to a nearshore software development team can provide the time zone parity your company needs.
3. New levels of value
Operating in a market based on different culture and mindset than what you are used to might not be as easy as you think. Communication is key if you want a high-quality project accomplished on time. And you will find that thanks to shared viewpoints and cultural understanding, your nearshore outsourcing team is highly helpful in providing important insights and feedback to corporations whose main skills do not include software development, including health, finance, and manufacturing companies.
By speeding up the embarkation and transfer of knowledge, your external team may begin to provide value at an early stage, improve your ROI, and secure fulfillment of your target dates.
4. Easy team integration
Compared to outsourcing to an offshore software company, working with a team with a similar culture, time zone, and language makes it possible for the outsourced team to integrate with your in-house team quickly.
Furthermore, working with specialists and software engineers means having access to technological innovation. A nearshore development team is at the forefront of the latest trending technologies and methodologies, so the software development company will continuously look for diversifying its set of skills.
5. Working with a large variety of experts
Nearshore software development gives you the ability to acquire talent that otherwise you wouldn’t have access to. You can access a dedicated team of developers ready to provide IT services based on your specific needs. The results are speedy operations and increased productivity, staying ahead of your competitors, and making it possible for the project to be launched within the right timeframe.
How to choose the right nearshore software company?
Like in any other recruitment process, dedicate time and resources to finding the right match for nearshore outsourcing. First of all, establish your software requirements and identify your business needs properly. The key is to choose a software provider with strong core values.
Don’t hesitate to ask for references and work samples, or questions about the types of projects they have worked on in the past. The software development team will provide all the details necessary.
When done correctly, outsourcing to a nearshore software company can provide some serious advantages for your business. Working with a nearshore software development team is indeed one of the trending methods of recruitment right now. The future of outsourcing technical solutions appears to be getting brighter as it gains appreciation among tech giants in the business industry.