Nearshore Software Development
Bring Your Software Project to Market the Way You Planned to With Nearshoring
Nearshore software development can be the key to meeting your company’s goals and making promises of development schedules that you can keep. As a Forbes contributor said, “A nearshoring alliance may save you months of recruiting and even cut costs of operation by finding talent in locations with a lower cost of living.” That’s nearshoring in a nutshell, but there’s a lot more to it, especially the geographically-based advantages, nearshore software development takes place in nearby time zones, in places managers and team members can visit with a short flight, and with culturally connected and highly educated remote team members.
Remote is Becoming the Norm, So Nearshoring Is Even More Natural
Speaking of IT hiring trends for 2021, CIO magazine observed that “74% of more than 1,000 workers surveyed in the US” prefer an emphasis on remote work post-pandemic. Adding a remote nearshore team member, or several, sharing the same development toolset, communications tools, and daily schedule can affordably enhance a company’s software development team and make a world of difference in what’s possible. In the IT and software engineering fields, countries like Mexico now “typically enjoy high English proficiency and possess a growing pool of young, skilled laborers” as top universities in Latin America turn out hundreds of thousands of skilled technical workers as Forbes has observed.
While the local economy grows, this cost-effective community of engineers is still more available for nearshoring work with US companies than tight local employment markets. For companies that haven’t configured for remote work fully, clutch.co has a brief outline of what tends to work best: “Managing distributed teams is much easier for companies that use cloud computing, DevOps, Agile project management, strong communication, and collaboration tools.” With nearshore software development resources, a winning combination.
Frequently Asked Questions (FAQ) About Nearshore Software Development
What is nearshore software development or nearshore development?
There are skilled, well-educated software developers throughout the world, and advantages to having them as remote members of team are many, including access to skilled labor that’s not easily available locally and cost savings. Geography can add advantages or disadvantages, such as easy 24/7 coverage for IT support, or the difficulty of communicating with a team halfway around the world. Nearshore software development combines the best of international software development teams with the advantages of local geography such as Central America for US Companies, or Eastern Europe for Western European companies. When resources are accessed through a provider who hires in the destination country and contracts with clients using a domestic presence, adding nearshore software development resources can be simple and effective.
What is the difference between offshore and nearshore?
Offshore software development uses global talent, which could be located in nearly any country. The advantages and disadvantages of teams and staffing from each country varies depending on the languages, culture, hours of work relative to the client company, and other factors. Nearshore indicates software development resources that are in the same area of the globe as the client company, with culturally and linguistically similar communication styles as well as nearby time zones. With well-trained and experienced software engineers and developers available worldwide, nearshore is often the cost-effective resource of choice.
What is a nearshore or nearshore software outsourcing company?
A nearshore company adds hiring expertise in nearshore countries along with a contracting presence in the client’s country. They can make it a simple matter to add nearshore software development teams or remote team members to a company’s development effort with the ease of local staffing, but with cost savings and increased availability of many specialties.
What are nearshore projects?
Since all the components of nearshore software development are available from providers, from project managers and team leaders to Agile teams and testing resources, it’s possible to staff a project using entirely nearshore resources, creating a nearshore project team that is well connected and easy to communicate with for the client company.
What should be practiced for best outsourcing?
- Build relationships between key members of managed on both sides
- Take steps to connect cultures including cultural education and mutual visits between project leaders or engineers to provide a sense of teamwork
- Make sure the project scope and schedule are clear and well-defined
- Ensure that the outsourced team has relevant domain and industry expertise
- Consider the outsourcing firm’s portfolio of experience and results, not just pricing
- Don’t start with a big project, start small and keep things simple to establish the process
- Make sure milestones and related payments are well defined and reliably met
- Make sure ownership of the work and the results is clear
- Consider support after project completion as a deliverable, and contract for it carefully
What outsourcing means?
Outsourcing as a concept means that a well-defined company operation is moved to an external provider, and the agreement based on the delivery of certain results or products, leaving the outsourced provider to determine the means and to manage the process up to delivery. For nearshore software development, for example, that would mean having a nearshore team create a mobile application to meet certain well-defined specifications and schedule.
What is the most important justification for a company to consider offshore decision?
Cost is a major factor for most offshore decisions, but for offshore and nearshore software development, there are other important issues such as the ability to access the right skills and experience to get the work done, especially if they are in short supply locally such as in US urban areas. Scaling is also an important issue for offshore production and nearshore software development, as companies may decide to produce externally so that they can expand or reduce production as needed in the future, something that could be complex and time-consuming within the company’s own organization.
What is better offshore or onshore?
Traditionally, most factors besides price would indicate onshore is better because it’s easier to control. These days, with nearshore software development, the ready availability of experienced, well-educated professionals without being limited to local hiring pools, and the ease of operating with remote software development teams and team members can actually make software development easier and more cost effective at the same time.
Why is offshore wind more expensive than onshore?
An undersea energy transmission infrastructure, technology developed for the challenging ocean environment including salt spray and storms, and extra materials required to place wind generation equipment offshore all add a premium of 20% or more to the cost of wind energy produced offshore instead of onshore.
Why do companies nearshore?
Nearshore software development has many advantages for projects where communication is critical such as Agile software development, and good communication also can provide a degree of comfort for managers of other projects such as outsourced software deliverables that can lead them to prefer a nearshore team to one less in their “comfort zone” of culture, language, and time zone.
What companies use nearshoring?
Generally, companies in adjacent countries to the nearshore team, or close by, tend to use nearshoring software development in those countries. These client companies can be large multinationals or small startups, software-focused technology companies or seemingly unrelated industries such as paper companies that need a specialized mobile app to help their sales personnel or marketing effort.
Why are companies nearshoring?
Two major reasons for the rapid growth of nearshore software development are the availability of additional skilled software engineers and developers in neighboring countries that can help to meet the domestic demand for tech talent in countries like the US, and the cost savings that may be available through nearshore software development.
What is an example of offshore outsourcing?
Offshore software development might be used to divide a company’s website reengineering efforts, leveraging their in-house software development team to update and expand their website’s backend servers, while using an offshore team to perform the front end development with a well-defined user interface, software architecture specification, and backend interface. Development and testing could occur independently and not be dependent on active communication, followed by a period of integration of the system as a whole.
What is the definition of nearshore?
Nearshore software development is performed in countries that are in geographically contiguous or nearby countries, similar in culture and located in similar time zones for ease of communication.
What are the major types for outsourcing?
A company considering outsourcing a product or process has three major options: local outsourcing, or onshore outsourcing; offshore outsourcing, with a global list of potential providers; nearshore outsourcing, where the provider is also part of the international provider market, but geographical closer, often sharing a border, which tends to include culturally similar and in a similar time zone.
What is the difference between onshore and offshore outsourcing?
Onshore outsourcing is using another resource in the same country to produce the product or perform the services needed instead of an internal organization. For example, outsourcing the production of equipment parts or facility cleaning services, or providing software development services that are not available in-house. Offshore outsourcing uses resources in other countries, so it typically is only appropriate for certain types of products or processes which can be performed at a distance. The other significant difference is in the trade and contract issues involved, as outsourcing to a foreign country tends to involve significantly more paperwork and local knowledge of the other country’s business practices.
What is nearshoring and reshoring?
Nearshoring is reaching out to a nearby country for outsourcing purposes such as manufacturing or software development. Nearshore software development can also describe the process of moving offshore development from a distant country to a nearby one. Reshoring is, essentially, moving offshored business activities directly back home.
What is an example of insourcing?
Insourcing is the logical opposite of outsourcing, where business activities that were performed externally are performed internally instead. This could be an option for a small business that began with very little in-house manufacturing or software development, and decided to expand their in-house capacity as they grew, manufacturing or developing software with their own employees and facilities to replace the previous, contracted outsource providers.
Is an example of offshoring?
Many companies have used offshoring to provide their call centers or other customer contact facilities, using workers at providers around the world in different time zones to reduce costs, provide easy scalability during high call volume times, and have 24/7 coverage.
What are the advantages of nearshore?
For US companies, a nearshore software development resource can be as near, culturally similar, and highly skilled as one in another state. For example, a team or team member providing software development from Mexico, consisting of Mexican university graduates who are skilled and experienced software engineers and developers, fluent in English, and in the same or similar time zone to the client company. When a provider bridges the international connection with employment of the workers and US-based contracts, the process of evaluating and bringing these workers onboard is straightforward. Because of the differences in demand for their skills between their home country and the US, nearshore software development using these remote team members can be extremely cost effective, with increased availability of desirable skills for US companies to add to their teams, and an attractive option for these software developers as well.
Nearshoring as Your Go-To Resource for Augmenting Your Software Development Team
Using nearshore software development resources through companies such as Sonatafy can make it easier to say “yes” when company executives ask about a project, “can we do it?” Managers can meet their culture fit, skill set, and cost-effectiveness targets and even exceed their expectations with globally competitive workers from nearby countries. It’s important to become familiar with this resource as it becomes even more relevant in an age of naturally remote-based software development teams, where nearshore workers fit right in. Call Sonatafy for more information.