The Basics of Nearshore Software Outsourcing

Nearshore Software Outsourcing

When researching and choosing to outsource some of your software development and digital transformation needs, you’ll generally see three different models: onshore, offshore, and nearshore. While all three models have their own unique benefits, many companies are drawn to the advantages of nearshore software development as it allows your business to focus on its goals while getting high quality work done at a lower cost.  

What is Nearshore Outsourcing?

The nearshore software outsourcing model consists of delegating tasks to a company in a neighboring country to give yourself more control over the expenses that your company incurs. Nearshore outsourcing is advantageous because there are fewer issues with inconvenient time zones, minimal language barriers, and common cultural features. For example, many countries in the Middle East and Europe use companies in Ukraine for their nearshore outsourcing needs.

The major difference between nearshore outsourcing and offshore development is the distance between you, as the client, and the company doing the work for you. If you use an offshore model, you’re likely using a company that is more distant, primarily in India or eastern Europe. With such a far distance from the US, time zones and communication can become quite inconvenient, even though the hourly rate may be attractive and the labor pool seems large.

What are the Advantages of Nearshore Software Development?

Nearshore outsourcing has a number of comparative advantages when put side-by-side with offshoring. Access to technology and the size of the talent pool allows for your company to expand its workforce to another country. 

Nearshoring allows you to take advantage of wage disparity in countries outside of the United States. In developing countries, salaries are generally lower and benefits for employees are managed by a local provider, unlike hiring someone full-time. 

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The final advantage you’ll discover is with the employees and countries’ level of commitment to information security. Some countries are not prepared or equipped with the training or secure infrastructure that US companies need. Nearshore American development allows you to work with a company and people with secure computing environments and training, who work during the same business hours to develop and secure important applications and data. The combination of internal and dedicated nearshore resources are the safest combination for outsourcing.

While each business goes through its own distinct cycle of growth, there will be times when you are tempted to bring in additional staff to handle your IT needs. If you have gone with a nearshore approach, you can hire a team that is scalable for a period of time instead of having to provision new positions and hire full-time employees.

If you want to stay lean and agile, then consider using the best nearshore services, www.ExcelSoftSources.com for your digital transformation projects.

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