With Sonatafy Technology
NEARSHORING VS. OFFSHORING OUTSOURCING
- 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 since 2020
The nearshore business model has become one of the most effective ways for US-based companies to source high-end development services at an incredibly-affordable rate.
Our Software Developers and Engineers cost on average $45 to $65 per hour
Sonatafy’s Talent Acquisition can place qualified Engineers in as quick as 2 weeks
Access to the TOP 1% of Software Development resources in Latin America
WHY A NEARSHORE COMPANY?
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 software applications, which often control their client-facing experience.
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).
SOFTWARE DEVELOPER BURNOUT
Many US-based companies’ software development teams have been getting ‘burnt out’, when working with overseas or offshore software development resources, where constant collaboration is typically required.
SOLUTION: Shift To Nearshore Software Development Services
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 (1). Being that this business model is used by many U.S. companies, you’re probably wondering the best way to navigate the tribulations associated with it. That’s why we written an article titled “challenges of outsourcing” that can be found by clicking the blue text.
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 like logistics, cultural values, and common language, to businesses because the talent is located in countries near your company. 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 within your business. Nearshoring allows for a company 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).
At Sonatafy, 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.
Since the coronavirus pandemic, many working business models have changed. As a solution, we have developed staff augmentation options that can help reduce your staffing costs and improve logistics.
Your project depends on the right team and thanks to nearshore outsourcing you can find valuable resources to help bring your software product to market. Our team of developers and engineers’ costs between $40 to $70 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 (2), now’s the time to find sustainable solutions that enhance your developmental process.
What is Nearshoring?
Subcontracting software development has become a go-to model for any business looking to reduce labor costs outsourcing their 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 tasks quickly, it makes sense to let a nearshoring company 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.
Typically, this process of outsourcing will first involve onshoring, which looks for staff within the same country to absorb the project that needs completing. Then offshoring where staff is hired from countries further away like India and the Philippines. Without making this section too long check out a detailed comparison here: Which is best onshore or offshore?
According to a Deloitte survey (3) on the subject, 35% of companies were looking to measure the pros and cons of outsourcing, focusing on the benefits of nearshoring versus offshoring.
“Investing in a strong service orchestration is key, as it helps ensure organizations realize maximum benefits from their service provider ecosystem, resulting in comprehensive accountability for action and reduced value leakage. “
– Deloitte 2020 global outsourcing survey
So, What Does a Nearshore Company Do?
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 looking to improve logistics, Latin America and other North American nations can typically supply the talent you need to complete your project.
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.
How Can You Use a Nearshore Business?
A nearshore company can enhance, replace or supplement in-house development projects. They provide a quick source of additional help to eliminate staff shortages hampering your project. Nearshoring companies can provide you unlimited access to developers with an array of skill sets, saving you time and money on recruiting, interviewing and vetting out candidates.
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.
While we touched on the major high points here, there is still much to be discussed. So we’ve created a detailed article comparing offshoring vs nearshoring, to further explain how nearshoring can work for you.
Implement a Nearshoring Strategy For Your Business
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 to figure out areas of your business that need the most assistance.
After creating project specifications, you can work with a trusted nearshore company, like us at Sonatafy, to find likely candidates. After you have a shortlist of potential candidates, ask your selected 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 staff to determine if they’re a good fit. Having members involved will allow you to get honest feedback for a much better decision.
Nearshoring your software projects can save cost, time, and stress by meeting project deadlines.
Difference Between Nearshore and Offshore
The primary appeal of selecting an offshore business model relates to lower labor costs. However, this comes with a range of potential 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 U.S. businesses that operate in that country. As well as the associated costs cut 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, culture, and time zone differences create serious obstacles to efficient communication and operation. Which further limit the utility of offshore outsourcing in IT. While nearshoring is quickly becoming the preferred method for outsourcing, we did want to demonstrate an in-depth comparison of the pros and cons of offshoring. Click on the blue text to navigate to the article.
Is Nearshoring Right For You?
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 tasks that go undone and the extra work that falls on existing staff members. Yes, you can offshore to nations such as India and China, but 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 potential drawbacks of offshoring.
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 smaller labor cost savings when compared to offshore states, firms have started choosing to draw international IT talent from them.
Nearshoring is a major outsourcing model that can be leveraged to reduce overhead for many parts of your business. Within a nearshoring or offshoring business model they’re many outsourcing categories you can use for your business. We didn’t want to get too technical here, so we wrote a piece describing the details. Just click on “types of outsourcing” to be redirected.
Appealing Price Point
The savings that a nearshoring business can offer are much less than offshoring, to be sure. 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 first, while reducing costs comes second. With this philosophy, it should be no surprise that a nearshoring company offers qualitatively superior outcomes as compared to going the offshore route.
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 with Sonatafy
Sonatafy specializes in connecting U.S. 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 staff member.
Frequently Asked Questions
What is Nearshoring vs Offshoring?
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 the pool of skilled resources at much lower price points than the U.S. is much larger.
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.
Offshoring is a type of outsourcing model used by companies across the world, this topic can be confusing for some, so we wrote an article detailing all of it and setting the record straight: offshoring vs outsourcing
What is an example of nearshoring?
While hiring a nearshoring business may be a newer concept for many firms, the effectiveness of reducing cost and logistics outweighs the idea of cheap labor from companies further away. Using the United States as an example, nearshoring focuses on hiring talent through a company (Like Sonatafy) from neighboring countries like Mexico.
In fact, we have numerous clients that have chosen us as their nearshoring company. Some of them include IBM, CISCO, FOX, CATERPILLAR, TaylorMade and more! Be sure to navigate to our cases studies page at the top for details on each engagement.
What is the main reason for nearshoring?
Nearshoring is all about shortening your logistics by bringing services closer to your business. Within this instance of software development, the main reason for doing so brings the advantages of offshore outsourcing closer to home. This allows your company to evade many of the risks and hidden costs of offshore outsourcing and provide available talent operating in US time zones. Effectively building a staff with low cost labor while being available during regular working hours. These are some of the many advantages of nearshoring.
What do you mean by nearshoring?
Just as we discussed during our article, nearshoring by definition is: Hiring a nearshore company that goes out and finds, vets, and recommends high quality candidates at a reduced cost for your desired service, while being close to your base of operations.
- Almost 300,000 jobs are outsource from the United States each year
- With approximately 71% of the United States workforce currently working from home
- Investing in a strong service orchestration is key, as it helps ensure organizations realize maximum benefits from their service provider ecosystem, resulting in comprehensive accountability for action and reduced value leakage