The Basics of Nearshore Software Outsourcing

Nearshore Software Outsourcing

When you outsource your software development, a third party comes in to perform work related to software that you could also have completed in-house. There are three models for outsourcing your software development: onshore, offshore, and nearshore; one of the advantages of nearshore software development is that it permits your business to focus on what it does best without having to go through a lot of money or time.

Just What is Nearshore Outsourcing?

When you use a nearshore software outsourcing model for your development, you delegate tasks to companies in neighboring countries to give yourself more control over the expenses that your company incurs. Nearshore outsourcing is helpful because there are fewer issues with inconvenient time zones, 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.

A crucial difference between nearshore software outsourcing and offshore software development is the distance between you, as the client, and the company doing the work for you. If you use an offshore model, you are using a company that is more distant, perhaps in the developing world in Asia or Oceania. Your time frames may be much more inconvenient for you, even though the hourly rate may be lower and your qualified labor pool (especially at those low rates) will be much larger.

What are the Advantages of Nearshore Software Development?

With nearshore software outsourcing, there are a number of comparative advantages when put side by side with offshoring. One of them has to do with access to technology and the size of the talent pool. Outsourcing allows the expansion of your workforce to a talent pool that is global. When you nearshore your project, you work with a firm that is in your time zone and is more attuned to your cultural mores.

Nearshoring allows you to take advantage of wage differences between your country and one that is still relatively nearby. In developing countries, there is not nearly as much expense for salary and benefits for your employees. Your position with respect to economies of scale improves, allowing your margins to look more sanguine as well.

One more advantage has to do with the differential in Internet security. Your in-house team might have a considerable amount of expertise with programming, but if that team does not specialize in IT, it is likely that the constant process of change means that security threats pop up that they have not prepared to handle. Nearshore development allows you to work with a company that has expertise in Internet security and will keep your website secure 24/7. Each business goes through its own distinct cycles of growth, and 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 set period of time instead of having to go through the infrastructure of adding full-time employees to your team.

If you want your company to be leaner and more adaptable, then consider using the best nearshore services, for your IT needs.