Today, modern companies are open to hiring outsourced development teams. They often delegate some projects to freelancers, not only other companies. Outsourcing helps them save costs and time and stay productive. On the other hand, outsourcing may bring some troubles — language barriers, time zone issues, and poor management. In this post, you’ll learn the pros and cons of nearshore outsourcing services and ways to deal with possible problems.

What is Nearshore Outsourcing?

Nearshore outsourcing means that you delegate software development or certain tasks to companies located in geographical proximity to your country. This model ensures minimal time zone differences and smoother communication with the service provider. When selecting a nearshore service provider, ideally, the time difference should range between 1 to 3 hours.

Furthermore, this proximity facilitates easier in-person meetings. For instance, a flight from Berlin to Tallinn is only two hours. Consequently, if you work with a Central European team means you could easily visit Estonia, have a detailed discussion with the development team and come back home.

Why Consider Nearshore Outsourcing?

Outsourcing in general is quite a beneficial thing for companies, and statistics totally prove it. Regarding the advantages of outsourcing, Statista also predicts huge popularity of this cooperation type between businesses and its income growing to more than $92 billion in the near future.

Outsourcing software development to a nearshore service provider offers several advantages over developing products internally. Some of the benefits include:

Geographical Proximity

Even though nearshore outsourcing service can be effectively managed without direct personal interaction, the geographical proximity to your development partner provides certain advantages. Travel expenses are typically low and the alignment in time zones encourages seamless and quick communication. If an in-person meeting with your nearshore service provider becomes necessary, nearshore outsourcing makes it more accessible.

Addressing Staff Shortages

Nearshore developers bring knowledge in resolving project-specific software assignments. They possess the necessary skills and flexibility to fill sudden staffing shortages. With a history of collaboration with various companies, they uphold high-quality standards, ensuring a smooth integration into your company’s operations.

Access to Skills

Nearshore outsourcing services companies provide companies with access to a wide talent pool. With outsourcing, companies aren’t limited by the skills of their immediate team – they have access to the best expertise a region has to offer. They also don’t have to spend money searching for the right candidates to join their team.

Cultural and Language Similarities

Having a common language and similar work cultures are significant benefits that contribute to achieving project goals. Effective communication is the foundation of all software development projects, and nearshore outsourcing guarantees the absence of language problems that could hinder progress.

Improving Company Efficiency

Nearshore providers enable companies to concentrate on day-to-day business activities. Companies opting for in-house development can become overwhelmed and unable to handle additional projects. Delegating tasks to external teams free up time and resources and enhance operational efficiency.

How to Choose Nearshore Outsourcing 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 internal team’s skills lie. Conducting a survey among your staff is an efficient method to evaluate their strengths and knowledge. This will give you a clear picture of what your team excels in.

Once you’ve established a project specification, identify a selection of nearshore outsourcing team who possess the necessary skills for your project. Reach out to these companies with your project details and request an outline of their proposed strategy for doing the project. This enables you to select a provider whose operational methods align well with your project needs.

Verify the Expertise of Your Shortlist

Before hiring a software development firm, it’s essential to conduct a detailed evaluation to confirm their professed expertise. Begin by checking their website and reviewing any case studies they have published. It may also be beneficial to reach out to past clients to authenticate the standard of their work.

Next, assess their reputation in the industry by checking reviews on independent websites and inspecting their presence on social media platforms.

Implement Project Management Processes

Utilizing project management tools is crucial for maintaining order and monitoring the advancement of your nearshore project. Implementing systems such as Basecamp, Jira, and Trello enhances communication with your development collaborators and helps achieve project milestones. A structured workflow is vital, and appointing project managers and team leaders is essential to guarantee timely completion of tasks and adherence to individual duties.

Conclusion

In summary, nearshore outsourcing services present a compelling opportunity for businesses to expand their capabilities while maintaining control over costs and project management. As the global market continues to evolve, nearshore outsourcing stands as a strategic choice for companies looking to stay competitive, innovative, and agile in a fast-paced digital landscape.

8Seneca is an exceptional IT outsourcing firm that provides outstanding IT outsourcing services to our partners. You can contact us here.