Nearshoring

With Sonatafy Technology

Sonatafy Nearshore Map

NEARSHORING VS. OFFSHORING

  • WORK IN SAME TIME ZONES
  • PROFICIENT ENGLISH SPEAKING TALENT
  • EXPERIENCED IN CULTURE
  • TIME ZONE CHALLENGES
  • LOWER % ENGLISH PROFICIENCY
  • GREATER CULTURAL DIFFERENCES

Voted #1 Most Trusted US-Based Nearshore Software Company of 2020

The NEW remote Software Engineering model has been solidified by the COVID pandemic. This means that you don’t have to pay more than $25 to $53 per hour for top tier Software development talent!

COST EFFICIENCY

Our Developers and Engineers cost on average $25 to $53 per hour

TIME SENSITIVITY

Sonatafy’s Talent Acquisition can place qualified engineers in as quick as 2 weeks

HIGHEST QUALITY

Access to the TOP 1% of Software Development resources in Latin America

 WHY NEARSHORE RESOURCES?

SHIFT TOWARDS NEARSHORE SOFTWARE DEVELOPMENT

For the past 15+ years, the most common form of IT outsourcing has been throughout India, with most large enterprise IT companies setting up significant operations there.

As Technology has progressed over the past 5-10 years, many infrastructure, network and SaaS components have moved to “The Cloud”, and essentially become commoditized. 

INTERNAL APPLICATIONS & SOFTWARE DEVELOPMENT

The “Crown Jewels” of an organization are typically their internal applications & software, which often control their client-facing experience

CHANGING TIMES

Many factors have changed in India in recent years, such as rising inflation, higher wages and the challenge of high attrition rates (due to the high volume of large-scale IT companies there).

Codebase And Contribution Audit
What causes software development team burnout

DEVELOPER BURNOUT

Many US-based companies’ software teams have been getting ‘burnt out’, when working with overseas resources, where constant collaboration is typically required. Read Our Article On Development Burnout.

SOLUTION: Shift To Nearshore Resources For Software Development

This has caused many US-based companies to look more closely at nearshore options which are not only a near-cost equivalent to India but provide resources that work in similar time-zones and have more stability to stay on their projects for the long term.

Sonatafy Brings Nearshore Software Developers to You!

Whether you’re familiar with nearshoring or this is your first time considering an augmented team, Sonatafy is here to help. Many businesses continue to add nearshore software outsourcing to their development process, helping them to save money while also enhancing productivity. Nearshoring also helps to protect your company’s assets. At Sonatafy, our goal is to match you with top talent that complements the existing skillset of your IT team.

You may be familiar with outsourcing, which is hiring external talent that can be located anywhere in the world. In fact, almost 300,000 jobs are outsourced from the United States every year. Nearshoring is a relatively new concept that outsources IT services to other countries that are neighboring or near the project hub. The process provides numerous benefits to businesses because the talent that’s located in countries near to your project often share similar cultural values and speak a common language. By adding team members that have a common ethos, it allows you to enhance productivity without dealing with language barriers or different work processes. It also reduces travel time to work sites and keeps the project in a time zone that allows for real-time collaboration.

The rapid digitization of the business world has allowed companies to accelerate development. The right nearshore software developer can help you overcome developmental roadblocks and present new solutions that bring you closer to your project objectives. Nearshoring allows for businesses of every size to work with experts who are reliable and affordable. Depending on where your company is located, nearshoring to Latin America may be a convenient solution to improve your software development life cycle (SDLC). Countries such as Brazil and Mexico continue to see rapid growth in the outsourcing market, and the global outsourcing market was worth approximately $92.5 billion in 2019.

At Sonatafy, we have access to top talent, including the top 1% of software development resources in Latin America. Our experts understand how to build scalable Internet of Things (IoT), e-commerce sites, mobile applications and everything in between. Whether you need assistance with machine learning or affordable front-end developers, we have access to English-speaking talent that’s been carefully vetted to make sure they meet the needs of your specific project.

The coronavirus pandemic has forever changed the way we work, and we’ve developed staff augmentation options that can help reduce your staffing costs. Our team of developers and engineers’ costs between $25 to $53 per hour, and we can identify and place the best talent for your team in as little as two weeks. With approximately 71% of the United States workforce currently working from home, now’s the time to find sustainable solutions that enhance your developmental process.

Your project depends on the right team and thanks to nearshore software outsourcing you can find valuable resources to help bring your software product to market. For the past seven years, we’ve worked with businesses of every size to help them accelerate growth and find cost-effective solutions to their SDLC. Let our team of experts connect you to nearshore software developer talent that can steer you towards your development goals.

What is Nearshoring?

Outsourcing software development has become a go-to model for companies looking to reduce labor costs or augment in-house IT staff. It’s a great way to complete complex projects with multiple deliverables along the same critical path. When you need to scale your software development team quickly, it makes sense to let a team of experts help you shoulder the burden.

Some companies simply prefer to let technology-centric companies take the lead on development projects so that they can concentrate on core competencies. After all, if you work for a home building company, would you hire carpenters to check your budget goals? It’s a matter of hiring someone with the right tools and skill sets to get the job done more efficiently.

According to a Deloitte survey on the subject, 35% of companies were looking to measure the pros and cons of outsourcing, focusing on the benefits of nearshoring versus offshoring.

So, What Is Nearshoring Anyway?

Nearshoring and offshoring are two ways of getting the same result. However, there are many advantages to nearshoring your software development projects. When you nearshore a project, you look for qualified software developers from a country close to your own. For U.S. companies, Latin America and other North American nations can typically supply the talent you need to complete your project. Mexico, Columbia, Argentina and Brazil are the four main suppliers of nearshore labor for companies looking for partners in similar time zones.

It’s easy to find educated, experienced developers in nearshore countries. Additionally, nearshore outsourcing helps to eliminate cultural and language barriers that sometimes bog down offshore relationships. It’s important not to ignore the impact of cultural differences when it comes to communication, trust and accountability.

Developers in South or North American countries are much more likely to speak English fluently and express themselves in similar ways. In comparison, offshore resources in Asia and other regions have a reputation of being more reserved and sometimes reluctant to admit when they fall behind on a project.

What Can You Use Nearshore Teams For?

Nearshore software development teams can enhance, replace or supplement in-house development projects. Some of the main advantages of nearshoring include addressing staff shortages, accessing specific skill sets, and saving money on development costs.

Nearshore developers are used to working on a variety of software tools. They provide a quick source of additional help to eliminate staff shortages hampering your project. Nearshore outsourcing companies give you unlimited access to developers with an array of skill sets. This means you don’t have to spend money recruiting, interviewing and vetting out candidates. Instead, you can quickly onboard nearshore developers and put them to work immediately.

Cultural, Language and Proximity Advantages

Many developers in North and South American countries speak English fluently. They also come from similar cultural backgrounds compared to offshore developers. Clear communication and understanding between team members can help projects move along more efficiently.

Because nearshore developers are in the same time zone, scheduling meetings is as easy as getting together with other people in the same building. If you do need to bring the team together for face-to face meetings, it’s much cheaper doing so from countries adjacent to your own.

Managing highly technical projects presents enough of a challenge. Eliminating language and cultural differences can help solidify the team quickly and get the work completed faster.

How to Implement a Nearshoring Strategy

Begin by assessing the skills in your own organization. Figure out which tasks you can offload to a nearshore team. We recommend conducting a staff survey so that you have a good idea of your own team’s strengths and weaknesses.

After creating project specifications, you can work with a trusted nearshore outsourcing company to find likely candidates. After you have a shortlist of potential candidates, ask your outsourcing vendor to provide verification of their expertise. This is a much simpler process than vetting out candidates and calling references on your own.

When you decide on a few top candidates, it’s a good idea to introduce them to the rest of the team to determine whether you’re getting a good fit. Your team will appreciate being included in the decision and may appreciate the help more.

Nearshoring your software development projects can save time, money and stress and help you get your project done on time.

Nearshoring

As the number of IT experts in the United States continues to lag behind demand, costs for relevant talent grow higher with the year. However, the worse side of the labor shortage is the amount of work that goes undone and the extra labor that existing teams have to shoulder. While offshore outsourcing to nations such as India and China have become more popular, many problems prevent it from fully filling the gap. On the other hand, nearshoring is a way to access the best IT talent abroad without the drawbacks of offshoring.

What is Nearshore Outsourcing?

Nearshoring is a type of outsourcing that emphasizes a set of nearshore nations, rather than the popular offshoring destinations. Historically, China and India have drawn the lion’s share of IT outsourcing, thanks to the extremely low labor costs and consistently improving quality of work that they offer.

Nearshoring has entered the lexicon of business management and economics more recently; it emphasizes the trend of moving from these traditional offshore locations to nearshore nations, such as Latin America, South Africa, and Eastern Europe. While these nations offer much smaller labor cost savings than offshore states, firms are increasingly choosing to draw international IT talent from them in reaction to the shortcomings of traditional offshore outsourcing.

How IT Nearshoring Differs from Offshore Outsourcing

The primary appeal of offshore outsourcing is that costs are far, far lower. However, this comes with a range of drawbacks. For one, the major offshoring nations often have little protection for your intellectual property. IP theft in offshore nations such as China affects many of the US businesses that operate in that country, and the associated costs cut in on the profit margin of offshore IT outsourcing. However, there are additional efficiency concerns and utility limitations that also come into play to further erode the hypothetical savings of offshoring.

Gaps in language and culture and time zone differences create serious obstacles to efficient communication and operation and limit the utility of offshore outsourcing in IT. If you need two or three extra coders or an experienced team leader to fill a vacancy in your firm, then traditional outsourcing may be useless.

Why Nearshoring is the Future of IT Outsourcing

The best way to understand the utility of nearshore software development is to appreciate the problems that it doesn’t face. Nearshoring sits halfway between offshoring and onshore staffing in a way that allows it to have most of the benefits of each, with few to none of the disadvantages.

No Outsourcing Drawbacks

Nearshore nations are more comparable to the wealthy, developed states that are looking for additional IT talent. Some nearshore destinations share a language with developed countries, and most have a large English-speaking population as well as close economic and cultural ties. This also extends to a high regard for IP rights, which cuts down on the risk of theft that businesses face in other locations.

Appealing Price Point

The savings that nearshoring offers are much less than offshoring, to be sure. However, local businesses in Mexico City can hire experienced developers for as little as $40,000 per year. While it’s often more expensive to hire a developer from outside the country than from within, you can still expect to save as much as 33% on wages for each worker. Furthermore, the global shift to remote working means that hiring a nearshore developer is just as easy as hiring remote workers from the next state over.

With this in mind, it’s easy to see the real purpose of nearshoring. Instead of aiming to cut costs as much as possible, nearshoring is about maintaining quality and tapping fresh talent, while reducing costs comes second. With this philosophy, it should be no surprise that nearshoring often offers qualitatively superior outcomes as compared to offshore outsourcing. In particular, nearshore software development talent is valuable, thanks to the ease of collaboration that your in-house experts will enjoy.

Dynamic Staff Augmentation and Agile Collaboration

Language barriers and time zones are serious obstacles when dealing with nations that have fairly little cultural exchange. However, Spanish is extremely common in the United States, and English is common in Mexico and many Latin American countries. Furthermore, the North and South American family of countries share a fairly small range of time zones, which eliminates one of the major obstacles to efficient offshore collaboration.

Nearshore IT staffing offers the responsiveness and efficiency that a firm needs to compete in the US marketplace. As such, it’s not unusual to see US firms hire a handful of nearshore developers, and then keep them on staff for years. This is a testament to how much nearshoring is a long-term solution to the challenges facing the US software development market.

Nearshore IT Staffing with Sonatafy

Sonatafy specializes in connecting US firms with the most experienced nearshore software development talent. Get in touch today to learn more about how nearshoring can work for you, whether you’re looking to hit your next project deadline or hire a permanent team member.

Q&A

What is the difference between offshoring and nearshoring?

Offshoring is method of outsourcing where companies offshore their in-country resources/ processes to vendors with operations in other countries. Common offshoring countries include India, China and the Philippines, where there is a large pool of skilled resources at much lower price points than the US.   

Nearshoring means outsourcing to a nearby country, preferably a neighboring one or that’s at least on the same continent. This helps to travel and hold face-to-face meetings more frequently, at a lower cost.

What is an example of nearshoring?

Sonatafy has numerous clients that are examples of nearshoring.  Some of them include IBM, CISCO, FOX, CATERPILLAR, TaylorMade and more which can be found at:  https://sonatafy.com/case-studies/

What is supply chain nearshoring?

Supply chain nearshoring is when a company transfer certain business operations, typically manufacturing, to a key vendor in a nearby country closer to the demand location for its products.

What is offshore outsourcing?

Offshore outsourcing is when a business moves part or all of its business operations to answer country which typically operates at a much lower price structure.

What are the stages of outsourcing?

The typical stages of outsourcing include the following phases:  Strategy, Selection, Negotiation, Implementation, Management and Completion.

What is better offshore or onshore?

Offshore outsourcing often has the lowest cost however onshore outsourcing provides the advantage of same time zone support, better communication and the ability for nearshore resources to be onsite with the client periodically.

What is the difference between offshoring and onshoring explain with an example?

Offshore outsourcing is known as the most budget cutting approach to outsourcing. This is when a company outsources certain roles/functions to another country.  An example of offshore outsourcing is WhatsApp.  WhatsApp outsourced its software development services offshore right before WhatsApp launched in 2009.  The company offshored its software development to Eastern Europe. The offshore resources took care of fundamental app development and maintenance while their in-house software developers concentrated on customer related tasks.

Onshoring often used to describe the practice of transferring a business operation that was outsourced offshore back to the country from which it was originally located.  An example of this would be a US based company that had IT operations outsourced to India and they decided to bring this division back to a US based location. The term Onshoring is also used to describe relocating a company’s operations within domestic borders, such as moving operations from Los Angeles, CA to Omaha, NE.

What is the main reason for nearshoring?

Nearshoring for functions such as software development brings the advantages of offshore outsourcing closer to home.  This allows businesses to evade many of the risks and hidden costs of offshore outsourcing and provide available talent operating in US time zones.

Why more companies are thinking about nearshoring to Mexico?

LOCATION , LOCATION, LOCATION!  The ability for near real-time collaboration is made possible through nearshoring in Mexico. Throughout Mexico, there are three standard time zones, similar to the U.S. and Canada. By keeping your project in the same time zone, you make it easier for team members to ask questions, brainstorm new solutions, and innovate without needing to organize numerous schedules. Another benefit of nearshoring is that it helps to reduce travel time between production sites. Although many people continue to work remotely or from home, being able to have in-person meetings and test prototypes is key to an efficient and accelerated development process.  Read more on the benefits of nearshoring to Mexico and Latin America at https://sonatafy.com/build-a-better-software-team-with-latin-american-nearshore-outsourcing/

What are the advantages and disadvantages of offshoring?

Offshoring is a method of outsourcing where a company relocates a division or business process to another country.  Some of the advantages of offshoring include  lower labor costs, 24/7 operations and the availability of skilled labor.  Some of the disadvantages of offshoring include  language and cultural barriers, quality control issues, and time zone adjustments. Read this powerful, yet insightful Case Study addressing the advantages of successful Nearshoring.

Why do companies outsource to Mexico?

Mexico has become a popular choice for outsourcing software development. The country is no longer a hidden gem for software outsourcing or nearshoring due to its proximity to America, its latent talent and the important ecosystem IT companies need.  Read more at https://sonatafy.com/why-mexico-software-development-has-excelled-over-the-past-5-years/

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