Dive into proximity-oriented technology partnerships! Understand Nearshore software outsourcing, offering geographic advantages, cultural alignment and cost savings.
Nearshore software outsourcing occurs when a company outsources software development work to a country adjacent to its own. For companies in the US, nearshore outsourcing typically means sending work to software teams in Latin America or North America.
Some of the most popular coastal destinations in Latin America include Colombia, Mexico, Brazil and Argentina. All four countries have work schedules that are compatible with all US time zones.
While cost reduction is an important factor in outsourcing decisions, companies that choose nearshore outsourcing are typically motivated by the high level of programming skills and the value it adds to software products. Nearshore outsourcing providers also typically have the language skills and cultural compatibility that make close collaborations run smoothly.
Why Outsource to a Nearshore Development Company?
Outsourcing software development to a nearshore provider offers several advantages over in-house product development. Some of the key benefits include:
Dealing with staff shortages
Nearshore developers have experience working on project-based software. They have the skills and flexibility to fill staffing gaps in a short space of time. Their experience of working with a variety of companies ensures that they meet quality standards, meaning they will adapt easily to your company.
Access to skills
Nearshore outsourcing companies provide companies with access to a broad talent pool. With outsourcing, companies are not restricted to the skills of their immediate team – they have access to the best specialist knowledge a region has to offer. They also don't need to spend money finding the right candidates to join their team.
Cultural and linguistic similarities
Sharing a language and similar work cultures are essential resources for achieving project objectives. Clear communication underpins all software development projects and nearshore outsourcing ensures there are no language barriers to contend with.
Improving company efficiency
Nearshore providers allow companies to focus on day-to-day business activities. Companies that choose to develop internally often find themselves overloaded with work and unable to take on new projects. Outsourcing frees up the company's time and resources, streamlining its processes. According to market research firm Technavio's Global IT Outsourcing Market 2018-2022 the IT outsourcing industry is expected to grow by $409 billion by 2022 and will be driven by the need to optimize business processes.
Geographic Proximity
Although nearshore outsourcing does not require in-person collaboration, being geographically close to your development provider has its advantages. Travel costs are generally low and time zone compatibility facilitates convenient and timely communications. If you need to meet with your supplier in person, nearshore outsourcing makes this option easier.
How to Outsource to a Nearshore Software Team
To help you choose the best nearshore outsourcing team for your needs,
we recommend following these three steps:
Assess your organization's skills
Before outsourcing software development, you need to know where your in-house team's skills lie. One of the most effective ways to evaluate your team's experience is to conduct a team survey. The results will give you a good overview of your team's strengths.
After creating a project specification, the next step is to create a shortlist of nearshore candidates who possess the specific skills required. Contact each company with your project specifications and ask for a breakdown of how they would approach the project. You can then choose to proceed with a company whose workflow processes seem to suit your needs.
Check your list experience
Before committing to hiring a software development company, it is important to perform due diligence and ensure that they can back up their claims of experience. As a first point of contact, you should look at the website and read the case studies. You can also contact companies they have worked with previously to check the quality of their work.
You should then check their market reputation by reading reviews on third-party websites and checking their social media channels.
Implement project management processes
Project management tools play an important role in organizing and tracking the progress of your nearshore project. Using tools like Basecamp, Jira, and Trello improves overall communication with your development partners and ensures milestones are met. An organized workflow is crucial. Project managers and team leads should also be assigned to ensure that tasks are completed on time and individual responsibilities are met.
How to Choose a Nearshore Software Outsourcing Region
Before narrowing your search for a nearshore software outsourcing provider, do a broader assessment of the country you plan to outsource to. Positive indicators include a high level of education in digital skills, a strong technological infrastructure and good English language skills.
Latin America is one of the fastest growing regions for software development outsourcing.
Colleges and universities have a strong focus on digital skills and the region has strong connections to the United States. Latin America also has good English language skills, with an average English Proficiency Index (EPI) of 50.33 .
You should also consider the reputation of the country's business culture and whether there is active government support for the outsourcing industry.
Once you've defined a region, you should focus on what individual providers can offer. A good nearshore provider will be able to demonstrate a modern and disciplined approach to software development. Ideally, they should be able to demonstrate successful long-term commitments to other companies.
From the start of your partnership, the focus should be on quality assurance, with high test coverage and successful integration and delivery. By emphasizing the need for open communication, the likelihood of establishing a long-term partnership increases enormously.
