What to Look for in a Nearshore Software Development Partner

Nearshore software outsourcing occurs when a company hires a software development team from a neighboring country to assist in achieving a project's objectives. For example, companies in the US often outsource to Latin American software companies as their proximity offers several benefits.

Working with a nearshore company ensures time zone compatibility, which makes communication and workflow easier. Sharing a common culture ensures that the outsourcing provider understands the underlying principles of the project and has a compatible approach to software development and project management.

In summary, a good nearshore software outsourcing company will:

• Provide the technical skills to complete your project on time.
• Have a robust workflow that facilitates communication.
• Demonstrate a commitment to cybersecurity.
• Have a good reputation in the market.

In 2020, the benefits of nearshore software development are starting to become more evident for all types of companies. A recent study by Computer Economics reveals that last year, large companies increased their IT spending on software outsourcing from 6.3% to 8.7%, while medium-sized companies increased their spending from 4.7% to 6.5%.

As more companies choose to outsource their development to nearshore providers, there is a growing need to define what a good nearshore software company should look like. Here's our overview of what companies need to consider when choosing a nearshore provider:

Technical knowledge that fills your skills gaps

OUTSOURCING TO A NEIGHBOR COUNTRY IMMEDIATELY INCREASES THE NUMBER OF TALENTED DEVELOPERS YOU CAN CHOOSE FROM

Working with an outsourcing company gives you access to a larger pool of talent. When hiring internally, companies are restricted to working with developers within a small radius of their office. Outsourcing to a neighboring country immediately increases the number of talented developers you can choose from.

Once a company assesses the skills of its internal team, it only needs to outsource the knowledge it lacks. For example, your in-house team may have good UX design skills but lack the JavaScript knowledge needed to make your product work. When choosing a nearshore outsourcing company, make sure it offers the necessary skills to complement your existing infrastructure.

Effective communication

According to Atlassiano , 59% of US workers say communication is the biggest obstacle to their team's success, followed by accountability (29%). Communication underpins every successful software outsourcing project. When choosing a nearshore company, consider how it answers your questions. Do they respond in a timely and professional manner, or do they provide vague responses that raise suspicions about their commitment to involving you in the process?

A good nearshore outsourcing partner will put communication at the center of your workflow. Using project management tools like Jira, Basecamp, or Trello demonstrates the company's commitment to clear communication. They enable software outsourcing teams to collaborate more effectively and communicate directly with customers.

Having open communication channels gives the client an overview of how the project is progressing. It allows them to see who is responsible for which tasks and when they are scheduled to be completed.

59% OF US WORKERS SAY THAT COMMUNICATION IS THE BIGGEST OBSTACLE TO THEIR TEAM'S SUCCESS, FOLLOWED BY ACCOUNTABILITY (29%).

A commitment to security

70% OF SMALL BUSINESSES Say They Would Rather Pay for Support on Cybersecurity Issues Than Do It Themselves

According to a recent report published by Accenture , cybercrime will cost companies $5.2 billion over the next five years. Microsoft Store Small Business Insights Research reveals that 70% of small businesses say they would rather pay for cybersecurity support than do it themselves.

Despite companies' willingness to outsource their cybersecurity, there is currently a lack of skills in this area. As more companies turn to third parties to protect their products against cyberattacks, it's important to know how they plan to incorporate security into their design.

A good nearshore outsourcing provider will be able to demonstrate their commitment to cybersecurity by providing you with an overview of their approach. They must be able to demonstrate how they handle sensitive data, storage, and backups. A robust security strategy begins in the planning phase of a project and should continue through the testing phase.

A good reputation in the market

Before committing to hiring a nearshore partner, it is important to do your due diligence and check their reputation in the market. The first place to look is the company's website. Do you have testimonials from previous clients that attest to the quality of your work?

What about their portfolio? What projects have they completed in the past and what were the results? A good nearshore development company should be able to confidently base its success on previous projects, highlighting its results to show how it delivered a solution that met its clients' needs.

You can also contact their previous clients directly to get more information about what it would be like to work with them. Likewise, third-party sites like Glassdoor, Clutch.co , and LinkedIn can be a good way to track honest customer reviews.

In summary, here's what to look for in a nearshore outsourcing partner:

Technical expertise: Make sure they have the skills needed to complete your project. A good nearshore outsourcing company will be able to demonstrate their experience by providing examples of previous work.

A robust security strategy: Find out how they approach security and ask if they have a documented workflow process they can share. How will they specifically ensure the security of your project?

Clear communication: What are your first impressions of how the company responds to your questions? Are they open and transparent in their responses? You should also check how communication fits into the workflow process.

A good reputation in the market: Do your due diligence by checking how the company is perceived in the market. Do they live up to their claims? Take the time to contact past customers and read reviews on third-party websites.