Industry Insights 5 What It’s like as a Nearshore Software Developer in 2021

Industry Insights


What It’s like as a Nearshore Software Developer in 2021

by | May 4, 2021 | All, Nearshoring, Software Development

About The Author Julio Lopez

Julio Lopez is a career UI/UX designer with an extensive marketing and development background. He is responsible for the evolution and consistency of our brand.

One thing that the global Covid-19 pandemic and the subsequent shift of many workers from in-office to remote working has significantly affected is the demand for software developers. Not only have many companies needed to adapt their existing programs to handle more remote work while still remaining competitive, but many traditional brick-and-mortar businesses were also forced to adapt to online sales and service. The demand for software to accommodate different business needs, paired with the already rapidly changing technological landscape, has made the outlook for nearshore software developers quite interesting for 2021.

Outsourcing as a Strategic Necessity

Nearshore Software Developer in 2021: Outsourcing

For many companies, specialty software development isn’t a division that they have on-site, or even on the payroll. As needs arise, many businesses will hire software developers, and even within software development companies, digital transformation has made it difficult to survive without a comprehensive development team.

That being said, even larger companies have found it difficult to maintain in-house teams capable of working on diverse projects across the rapidly advancing industry. Within the technology industry as a whole, many niche specialties have emerged, and these individuals are few, yet in high demand. For smaller companies, being able to keep pace with enterprise-scale companies is even more difficult, as they cannot maintain the staffing levels required to stay competitive.

Outsourcing, therefore, has become ever more common, as in-house teams partner with outside consultants on certain phases of each client project. Creating and maintaining positive relationships with specialty consulting software developers is an important aspect of small software business success.

Evolution of nearshore outsourcing

Nearshore outsourcing evolved as a solution for smaller companies to take advantage of software development and technological talent in countries adjacent, or nearby, their own. This is a common practice for different North American companies, working with contractors in the US, Canada, Mexico, or Colombia, for example. Different forces have elevated nearshore contracting, and there are many advantages. We’re looking at how these developments, plus the positives for software development companies large and small, are impacting the outlook for the industry in 2021.

Outlook for 2021

It’s important to take the history of nearshore outsourcing into consideration when forecasting for the future.

Outsourcing – in the beginning

India had long enjoyed a strong history of being the go-to location for outsourced technology and software development. A large talent pool, coupled with low salaries compared to many North American and European countries made this a fiscally appealing option for many software development companies. However, the rise in standards of living in India, and therefore the salaries of contract developers, coupled with the challenges that incorporating these very geographically remote workers into teams that included business-critical solutions, eroded the advantages that Indian outsourcing had provided. Better communication between teams leads to better client results

Long-distance outsourcing relationships, including time zone and language barriers, may have impacted project development for many companies large and small. Therefore, looking closer to home became more appealing. Nearshore (located nearby) versus far shore (far away, such as in India) contractors became attractive to US clients, and the emerging talent pool in many Latin American countries provided the solution.

These nearshore workers are either added to the company full-time, as remote workers or contracted to work with particular client solutions, as part of software development teams.

Nearshore Outsourcing Gives Businesses a Competitive Advantage

Nearshore Software Developer in 2021 – Competitive Advantage

While outsourcing was initially adopted to minimize costs, now the advantages are more than that. Having a wider team of specialist developers allows companies to be more agile, more responsive, and address client needs. Therefore, having a larger “bag of tricks” in the form of niche contract workers and nearshore software outsourcing allows smaller businesses to be more competitive and allows enterprise companies the ability to create significant advances in software development.

Looking to the Future

Looking To The Future

Nearshore software developers can expect to see a surge in demand from both their home centers and those nearby. Developing in-demand skills to becoming a niche expert in your particular area of expertise can help the individual programmer enjoy greater success. For businesses of any size, access to a greater talent pool provides the agility needed to create innovative programs and address the rapidly changing needs of their clients.

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