Nearshore software outsourcing refers to an approach of work or services performed by a company in nearby countries instead of the organization's own country.
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In today's world, the way businesses are run has changed. Businesses are constantly looking for efficient ways to streamline their processes. One of the trends that are shaping businesses is outsourcing. Generally, contracting out a company's project to a third party and taking advantage of their expertise and experience. Nearshore software outsourcing has come as a strategic solution for companies that want to partner with software developers in nearby countries.
Whether you are a startup falling short of an in-house team or an established company aiming to streamline your operations, it is important to have a clear understanding of what nearshore software outsourcing is, why you choose a nearshore software development company, and how to hire it. In this blog, we have discussed everything you need to know if you are new to nearshore software outsourcing. Let's dive deeper to get more insights.
Nearshore software outsourcing is a type of outsourcing model that involves delegating software development projects and tasks to companies found in nearby countries. In other words, getting your projects done by companies located in countries sharing similar time zones, instead of relying on an in-house team or local talent alone. Hiring nearshore software developers is a game-changing solution for companies looking to bridge skill gaps, maintain growth, and remain competitive. It allows them to outsource the right software developers, save time, and cut costs on setting up an in-house team.
Nearshore software outsourcing helps businesses collaborate with a team of professionals who have the expertise to help achieve the goals of their projects. It is suitable for companies that have lots of short-term projects to complete and cannot afford to employ an in-house team. Especially when they fall short of developers to help, they can go for nearshore software developers capable of designing, building, deploying, and maintaining software and help them scale on-demand.
Nearshore software development is better than the other two outsourcing models such as onshore and offshore. There are many differences between these models, that can significantly impact which model suits your business. Let's explore why nearshore software development can be the right choice for outsourcing software development.
Outsourcing software developers within your own country gives access to only a limited pool of talents in terms of technology and skill level. Even if you find the right talents, the cost of hiring them can be significantly more expensive. So if you want to reduce the development budget, onshore software development may not be a good choice.
- Limited Pool Of Talent
- Higher Costs
- Less Scalability
You get a vast global talent pool in offshore software development but it includes time zone challenges and language barriers. It involves getting your software projects done by developers in distant countries, often on different continents. It might be cost-effective but can lead to misunderstandings and delays in feedback that slow down the development process.
- Time Zone Challenges
- Cultural and Language Barriers
- Lack Of Project Control
Looking at the challenges one has to face in onshore and offshore software development, it is now evident how apt nearshore software development could be for your business. Nearshore software development bridges the gap between onshore and offshore. It offers a multitude of benefits ranging from cost efficiency to easier communication. It is the ideal way to get the software developer you need at a price you can afford. Also, this outsourcing model is best suited for outcome-based projects leveraging the agile approach.
Usually, companies make up their mind to outsource a software development company but remain unsure of the arrangement that suits their business needs. Typically, there are three relationship-based outsourcing models for nearshore software development.
Nearshore software developers work as a part of your team for a certain period till the project is over. It is suitable when you fall short of in-house developers and want to fill tech talent gaps within your existing workforce.
Under this arrangement, nearshore software developers work exclusively for a particular project or specific part of your project such as building turn-key or ready-to-use solutions based on your project requirements.
When you go for end-to-end project outsourcing, the nearshore team is responsible for the entire software development cycle starting from initial planning to deployment. It offers a holistic approach to delivering software solutions through IT outsourcing services.
Hiring a nearshore software development company has become popular with increased dependence on the industry’s best development methodologies and advanced technologies. It is one of the profitable forms of outsourcing developers that gives access to unmatched knowledge and experience in software development. Here we have listed down the compelling advantages associated with it.
One of the main advantages of hiring a nearshore software development company is it is more affordable. Especially when hiring costs are going up all the time and budget is top of everyone's mind, it helps cut down on higher labor costs and delivers services within budget.
When you hire a nearshore software development company, you get access to an extended pool of talents with specialized skills. They have experience working on a wide array of software development projects that effortlessly fit in with your company and meet quality standards.
Some software development projects require frequent interaction and on-site visits. Working with a nearshore software development company makes it easy for businesses to have such meetings with their nearshore teams whenever needed.
It will be more difficult to work together when you outsource developers from countries with time zones entirely different from yours. However, hiring developers from similar time zones makes it easier to connect through messaging tools and video calls without having to wait for hours.
Having a similar language and working culture is essential to reach project goals. Nearshore software development companies share similar cultures and languages, making collaborating and working easier. There won't be any cultural or language barriers that could cause misunderstandings.
When you outsource a nearshore software development company, there is no way you lose control over your business operations. You can effectively communicate with them and maintain complete control over your project.
Nearshore software development company offers high-quality results and flexible project management. It employs agile development methodologies to easily adapt to feedback and make improvements that help achieve the desired outcomes.
It is important to comply with certain regulations and security protocols such as cyber security and data protection for software development projects. These regulations might differ between regions. Nearshore software development companies are more likely to work from the same regulations as yours.
Hiring a nearshore software development company can be perfect if you are looking to scale your business. Based on the contract, you can adjust the size of development teams according to your project needs. Some companies offer IT staff augmentation services that you can take advantage of.
You can have better communication and agile collaboration with nearshore software development companies. This results in a faster development cycle and makes sure that your project hits the market sooner, giving you a competitive edge.
Hiring the right nearshore software development company could be quite challenging. While every company has its process of hiring and onboarding, here are some of the common steps involved in the process. These steps will guide you to choose a reliable nearshore partner.
Before outsourcing a nearshore software development company, it is important to define your project requirements such as objectives and end product, and estimate the boundaries like time frame, resources, and budget. you must have a clear overview of your internal team's skills to look for the nearshore team with the specific skill you require.
The next step is to conduct thorough research on the companies that fit well for the services you are looking for. Contact various companies and request a breakdown of how they would approach the project based on your requirements. Shortlist the companies whose workflow processes match your requirements.
This is the most crucial step in the whole software development outsourcing process. Once you have shortlisted the nearshore software development companies, check whether they possess all the skills you seek. make sure they specialize in programming languages, frameworks, technologies, and development methodologies needed to handle your project.
Also, look for whether the team comprises talented DevOps engineers, software developers, and a quality assurance team capable of delivering high-quality software solutions.
Make a wider assessment of your nearshore software development partner and their track record. Check out their portfolios to get an idea of what type of clients they serve. Read their case studies to know the type of projects they have handled previously and verify the quality of their work.
Ensure that they will be able to stay current with nearshore trends, follow modern engineering practices, and maintain long-term engagements with companies to provide a disciplined approach to your software development.
Once you have selected the company, ensure whether it fits your budget or not. The cost may vary depending on the technology, tools, and frameworks they use. The complexity of the project also determines the cost. Building software from scratch may cost more than updating an existing product. Going for a highly skilled or bigger development team will also add to the cost.
Having a secure and proper work arrangement is more important. Thoroughly verify the company's contract clauses including Service-level agreements, standard procedures, data protection policies, and more. Before moving on to the next step, double-check the other contract terms such as pricing, engagement model, and delivery milestones to avoid future consequences.
Although you can meet your nearshore team in person whenever required, it is important to set up communication channels such as WhatsApp, Gmail, Slack, Telegram, etc for real-time collaboration. Use virtual meeting platforms like Skype, Google Meet, or Zoom to share project-related information instantly.
Next comes the onboarding session to familiarize the nearshore team with your company's culture, workflow, and the requirements of the project they are going to handle. You can conduct meetings, sprint reviews, and brainstorming sessions to make sure everyone is on the same page to achieve project milestones.
For smoother project execution and delivery, the team members must first understand their specific roles and responsibilities and be clear about how their tasks contribute to the overall project goals. You need to allocate the roles and responsibilities for developers, project managers, and team leaders to make sure the project is completed on time.
It is your responsibility to regularly monitor and evaluate the progress of the project. You can ask for meetings, standups, and progress reports to know the status of the project and identify the areas where processes could be refined to ensure high-quality deliverables.
There is no doubt that outsourcing to a software development partner can be a game-changer for your business. And if you are looking for a best-in-class nearshore software development partner to handle your software project, then look no further than Maticz, the top nearshore software development company. We assist startups and all-scale businesses in delivering premium software solutions.
We have hands-on experience in leveraging innovative technologies and methodologies to provide robust software solutions while delivering them on time and within budget. Being a top IT consulting company, we can help you even if you want consultation on software development or outsourcing. We stand as a trusted technology partner in software engineering services and IT consulting. So why not leap? Feel free to fill out the contact form and we will get back to you in no time.
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