Last Updated on August 14, 2023
Nearshoring is a popular phenomenon in today’s business world. In recent years, this model has become more common and in demand. Nearshoring allows companies to access a global talent pool, reduce development costs and improve project efficiency. If you are thinking about hiring nearshore developers then this article is for you. We will look at factors to consider when choosing a nearshoring service provider.
What Is Nearshoring
Nearshoring is a work organization model in which a company moves its business processes or software development to countries that are geographically closer to its location. This is different from offshoring, where business processes or development are transferred to geographically more distant countries.
The main idea of nearshoring is to find partners or external development service providers that are located in the closest cultural and geographical areas. For example, a US company might choose Mexico or Canada as a nearshoring location, while a European company might choose Eastern Europe.
Nearshoring benefits include:
- Geographical proximity. Nearshoring facilitates communication and project management as companies can have cross visits and more frequent face-to-face interaction.
- Сultural similarity. Countries participating in nearshoring often have similar cultural and business values, which contributes to better understanding and collaboration between teams.
- Smaller time difference. Compared to offshore outsourcing, nearshoring offers more similar time zones, allowing for more efficient time management and faster communication.
- Greater availability of experts. Nearshoring countries often have a well-developed IT infrastructure and skilled workforce, which provides access to high-quality resources.
- Cost reduction. Nearshoring can be more cost-effective than in-house work or outsourcing to remote countries as travel and communication costs can be reduced.
Nearshoring Is An Approach That Can Be Used In Any Projects
Nearshoring is an attractive option for companies looking for a balance between quality, proximity, and cost of outsourced software development. Nearshoring can be an appropriate choice for various types of projects, especially in the following cases:
- Web development. Web development is one of the most common use cases for nearshoring. Companies can find web development teams to create or modify websites, online stores, portals, and other online projects.
- Software development. Nearshoring can be used to develop various kinds of software, including web apps, mobile apps, desktop apps, and more. Development teams can work remotely, but with close time zones and cultural similarities, enabling more effective collaboration.
- Software testing. Nearshoring can be applied to software testing and quality control. External test teams can test and validate applications, and detect and fix bugs.
- Project management. Nearshoring can be used for project management, including planning, controlling, and coordinating team activities. Project managers may be located in close geographic locations and have easy access to development teams.
- Consulting and analytics. Nearshoring can also be used to provide consulting services and analytics in various areas such as business intelligence, data management, or strategic planning. Companies can turn to external experts for professional advice and analytical services.
Why Many Companies Choose Nearshoring
Many companies choose nearshoring to take advantage of this model and achieve their goals in a more efficient and competitive way.
Nearshoring reduces the cost of software development and IT services. In countries with low labor and operating costs, companies can find qualified people at lower rates and access more cost-effective resources.
It also allows companies to access a global talent pool. They can choose from a wide range of experienced developers and experts with a variety of technology skills and experience.
Nearshoring can speed up the software development process by distributing work across development teams in different time zones. This allows you to work 24/7 and reduce the time it takes to complete a project.
Companies can hire nearshore developers to focus on their core business and business strategy while outsourcing software development and IT services. Most importantly, nearshoring provides companies with flexibility and scalability. They can easily scale up or downsize development teams based on project needs and labor market supply.
How to Choose the Right Company That Provides Nearshoring Services
Any offshoring model has its drawbacks and risks. To protect yourself from problems as much as possible, we recommend that you take a responsible approach to choosing a company that provides such services.
The following recommendations will help you find a reliable partner:
- Experience and reputation. Explore the company’s experience in nearshoring and check out its portfolio of projects. Find out about the reputation of the company, read customer reviews, and evaluate their level of professionalism.
- Geographic location. Consider the company’s geographic location and determine how it fits your needs. Location can affect communication, time zones, and availability for face-to-face meetings.
- Qualifications and skills of the team. Determine which specialists are included in the company’s team and what experience they have. Learn about their qualifications, certifications, and skills, especially with regard to required technologies and platforms (e.g. React JS or .NET).
- Data security and privacy. Pay attention to the security measures that the company takes to protect your data and the confidentiality of information. Make sure they follow industry standards and safety regulations.
- Development quality and processes. Learn the development methodologies and processes the company uses. Find out how they provide quality control and software testing. Does their development methodology suit your requirements?
- Communication and language skills. Make sure the company has good communication skills and can communicate effectively with your team or customers. Check what languages they speak and how well they speak the language they need to interact.
- Price and budget. Compare the cost of the company’s services with your budget and consider value for money. It is not always worth choosing the company with the lowest cost, as the quality and results of the work are also important.
Final Thoughts
The value of the nearshoring model lies in the combination of cost-effectiveness, access to global resources, and flexibility in managing development teams, which allows companies to achieve better results and competitive advantages. If you want to learn more about hiring nearshore developers and apply this model to your project, we recommend Digiteum. Digiteum has impressive experience in managing software development projects, including those based on the nearshoring model.