Why Outsourcing to a Nearshore Software Development Company is the Right Choice?
Software outsourcing is definitely a trend. Companies all over the world partner up with outsourcing vendors to leverage their services and induce growth. However, there is a challenge: How to choose the right software outsourcing company?
The software outsourcing market is big, and you can find a partner from any part of the world. It sounds great, but when you encounter the real tasks of finding a partner, where do you start?
Nearshore outsourcing is one of the options available, and it brings a lot of benefits to businesses of any size and industry. The GBKSOFT nearshore team is ready to share the real insight of software nearshoring, describe why it’s so good and what pitfalls you may encounter.
Benefits of Software Nearshoring
Nearshoring means that your outsourced development team is based in a nearby country. Such a close location opens a lot of opportunities that you can use to get the most of your cooperation.
Ideal balance between price and quality
The most common reason for companies to resort to outsourcing is the lower rates that outsourcing vendors offer. The local software developers in the US or Western Europe usually charge a lot of an hour of work, while teams from popular nearshoring destinations like Eastern Europe, Latin America, or Asia can show rates are half as much.
At the same time, lower prices don’t mean worse quality. The software development market is highly competitive in nearshoring countries, so the developers are bound to provide a high quality of services, otherwise, they will go out of business pretty soon. Lower rates are possible because of the lower level of the average wage in the mentioned country.
In contrast with offshoring, nearshore vendors are a few hours away from your location. For example, you need only two hours to reach Ukraine, one of the most popular nearshoring destinations, if you are located in any European country.
It is pretty convenient if you want to visit your outsourced team, discuss your partnership or go through negotiations. A few hours flight and no jet lag — and you can meet your partners in person.
Convenient time zones
Again, due to proximity, you won’t have a big time difference with your partner. Hence, the overlap in working hours is significant, which allows establishing seamless communication without any delays.
Nearshoring companies are aimed to provide software development services, so they have their infrastructure and processes are geared towards this type of business. Thus, you won’t need to invest in equipment, additional premises, spend time to establish processes, etc. The vendor takes care of the overhead, developers’ employment, taxes, while you just need to pay for the services they provide.
Nearshoring vs Offshoring
Nearshoring and offshoring are often compared, as both of these outsourcing options can be suitable for businesses. What company to choose: the one that is close to your own country or the one overseas? Here is the list of the main pros and cons of both models, so you can evaluate them and choose the best for you.
Pros and cons of nearshoring:
- territorial proximity;
- cultural similarities between you and your partner;
- the similar business ethics;
- possible communication difficulties due to remote work.
Pros and cons of offshoring:
- low costs;
- big talent pool;
- time zone differences;
- significant cultural differences;
- security issues.
👍How to Pick An Nearshore Software Development Company
Finding the right partner may take some time and effort. But eventually, it will pay off, as a reliable partner will push your company further and help to streamline processes, enter new markets or increase the capacities of your business.
So, we prepared a list of steps you need to take to find your ideal partner.
📌Determine your needs
The nearshoring market is full of companies, so we suggest choosing the criteria for your partner from the start. Think about the main specific of your development and the expectations:
- Why do you need to develop software?
- Which platforms should it be working on (desktop, mobile)?
- How big should your partner company big?
- What budget do you have?
These questions will help you to narrow the list of possible vendors.
Take enough time to research possible partners. Thanks to the Internet, you may learn a lot about the company even without interacting with its employees.
Check their websites and look through their services, portfolio, awards, certification, and testimonials. We also suggest checking tech directories like Clutch or Goodfirms to read through testimonials that their clients left there. Usually, such platforms interview clients themselves or at least verify the reviews, so it’s possible that they will be legit.
You may also check social media, job portals, or tech blogs to check the brand of the company. For example, if there is a lot of negative feedback from previous employees, it might mean that the company has low employee retention and a bad work ethic. As for you, it may lead to frequent developers’ replacement, delays, and low productivity.
The negotiation stage is also a good market for your compatibility. While the vendor studies your request, makes estimations, and prepares the offer, you may observe how they build processes and communicate.
You may see if they are quick to answer if they research the topic thoroughly or stay superficial if they are ready to go the extra mile to help you reach this goal. If they show themselves as attentive, nice, and hard-working here, they will certainly be the same way while in actual development.
Nearshoring connects all benefits of outsourcing with proximity to you. Hence, it’s perfect for those who are looking for alternatives for in-house development or onshoring but want to build close cooperation with a software development partner.
If your company is situated in Europe, we suggest checking Eastern European countries for nearshoring like Ukraine, Poland, Bulgaria, etc. If you are in the US, Latin America has a lot of reliable software vendors. Take your time, do your own research and find that one partner you are looking for!