The Seven Greatest Benefits of Nearshore Software Outsourcing
Aug. 15, 2018 by Russell Ormes
When a company chooses to outsource software development, there are four options. The first, onshore, means you are outsourcing to a third party in the United States. The second, offshore, means you are outsourcing to a third party in another country – most likely China, India, or Malaysia. The other two options – dualshore and nearshore – are less straightforward.
Dualshore outsourcing is a hybrid of onshore and nearshore, where a liaison or account manager is based in the United States with some software developers, while the remainder of the development team is based in a nearshore setting country. Nearshore, perhaps the most beneficial of all options, involves outsourcing to a neighboring country. For companies in the United States, this means any country in North or South America. With all of these options in mind, why should you choose nearshore development outsourcing for your software development and staff augmentation needs?
An Overlapping Workday
Offshore outsourcing, and even dualshore outsourcing, pose challenges during your workday. How can you work effectively with a software development team where the time zone difference can be ten hours or more? Nearshore outsourcing provides as opportunity to work with affordable developers in a matching time zone, promoting collaboration between yourself and your contractors.
There may come a time when you need to visit your software development team directly. The expenses associated with this visit are far less when you choose nearshore contractors versus offshore contractors. Plus a visit to a beautiful tropical destination like Costa Rica will create an opportunity to site see and relax while on a business trip.
Fluent English Language
There are few things more frustrating than trying to communicate with a contractor who doesn’t understand you. When you choose nearshore developers, your opportunity to work with contractors fluent in English increases dramatically.
Familiarity With Federal Laws and Regulations
In the United States, federal laws and regulations are continually changing. Working with US-based vendors who understand and respect these regulations will save your company time and money in the long run.
In numerous cases, software developers in other countries will cost significantly less to contract than developers in the United States. Offshore developers, while 40-55% cheaper to contract than onshore developers, often come with hidden costs in terms of language, time zone, and culture differences. On the other hand, nearshore developers not only bring cost-efficiency but convenience and fit as well.
Nearshore outsourcing can provide the same level of education and skilled labor as onshore outsourcing – but at a fraction of the price. Latin America, in particular, offers the same resources for software developers as the United States.
Get the Best of Both Worlds with Nearshore Outsourcing
More than anything, nearshore software outsourcing is known for providing cost-effective solutions that work. You can save money while choosing skilled contractors that speak English, are close in proximity and culture, and follow United States rules and regulations.
At Excel SoftSources, we offer nearshore software development and staff augmentation out of Costa Rica and Peru. Our skilled collaborators have experience in Agile and Waterfall production. Our experienced team works around the clock to provide educated, skilled, and dedicated employees for our clients. Contact us to learn more!