Why Nearshore Outsourcing is Better than Offshoring when Outsourcing
There is no denying that outsourcing is one of the best ways to maximize your output potential. Developers work around the world, from Eastern Europe to Colombia, to help your software development project launch in time. Suddenly, your team is much larger, and meeting your deadlines becomes much more manageable.
However, not all outsourcing models are the same.
Classical offshoring models have been losing importance every year in the software development industry, mainly due to the growing complexity of IT projects. Offshoring is being replaced by nearshore outsourcing, where U.S. businesses are shifting from offshore sites to places closer to home in recent years.
Many businesses used to utilize offshoring to cut costs for outsourcing services, especially in manufacturing. In some cases, businesses would even move their entire company to their outsourcing destination to take advantage of a lower cost of business than in the United States.
Now, what we’re seeing is a movement toward nearshoring, which can still improve project and company costs and business management without going to the distances that were once necessary for this kind of benefit.
Businesses have found that nearshore outsourcing partners can also provide better services, communicate more efficiently, and offer higher-quality control in project management.
As a result, many enterprises choose nearshore outsourcing as their new go-to option since it presents far fewer uncertainties and lower levels of risk when you compare it to the risks of using an offshore outsourcing partner.
Why Is Nearshore Outsourcing a better option?
Many factors make nearshoring a better choice than offshore outsourcing. Here are just some standout examples we have found.
Closer to Home
If your company is in the United States, but your developers work in Eastern Europe, there are several problems we can immediately identify. The most apparent of these are the time difference and distance.
Organizing development teams and meeting specific deadlines can be a challenge even when working in real-time.
The time zone is less of an issue as nearshoring means outsourcing to a company that is closer to shore. Indeed, nearshore outsourcing is just like offshore outsourcing, except you work with development teams that are within (or close to) your timezone.
Easier Communication
Nothing kills your project like a lack of communication. It’s much easier for all parties to get on the same page when everyone is near the project’s home base.
With offshore outsourcing, you may encounter problems such as cultural differences and language barriers that can greatly hamper your overall productivity.
Nearshoring circumvents these problems, for the most part. Countries with shared borders tend to have more cultural similarities, making issues with cultural and language barriers less likely.
Access to a Wider Talent Pool
Nearshore software development provides a perfect balance of both onshoring and offshoring’s most substantial perks. One of the top advantages of both types of outsourcing is the talent pool.
Nearshoring allows you to make the most of the talent that’s out there without having to take on board all the negatives associated with offshore outsourcing. You aren’t limited or restricted to the resources immediately at hand. You can expand and make the most out of multiple development teams beyond your local area.
Why Latinamerica is a great choice for your Outsourcing needs
Latin America has emerged as an ideal market for software development companies. It is also closer and more convenient than offshore outsourcing. Here’s why nearshore outsourcing to Latin America for your software development team is wise.
South American countries have become more popular as of late for nearshore outsourcing. Most people who live in South America are bilingual, which is a benefit that can’t be undervalued.
In Latin America, you may end up paying more for services, but you’ll end up saving money in the long term due to accessibility, quality of services, and growth of the industry.
The advantages that these countries present make them ideal for outsourcing software development from companies in the United States.
Just because of the proximity, Latin America provides many benefits purely based on its location. First, the time difference between your office and your outsourced team will be negligible if there even is one. This means that your working hours will overlap entirely with the company to whom you are outsourcing software development.
One of the largest impacts to cost is that no time change means less time lost to project delays from a lapse in communication.
Outsourcing to Latin America means investing in speed and efficiency. Everything can move quickly, and communication can occur in real-time without having to wait until the next morning to hear back about a question.
While the IT industry is booming in many countries worldwide, few are putting the same investment into the growth as Latin America at this time.
The IT field has been a major source of revenue for many people and has boosted the economy. Because of its profitability, many of these countries have chosen to invest in its growth through education and training for tech employees. They have also created and funded university programs and scholarships designed to bring more talent into the industry.
Latin America and the U.S. influence each other’s growth academically and in the market. The most beneficial overlap is that they are both agile. Like the U.S., many of these countries push for the adaptation of agile development. The agile way of doing things emphasizes collaboration, quality, flexibility, and communication.
Conclusion: Nearshore Outsourcing Is Your Best Choice
Bringing on a nearshore software development company beats the other outsourcing choices. You can reap the benefits of a wider talent pool without dealing with schedule delays and cultural barriers. Why bother dealing with working in multiple time zones when you could choose a company that’s already on your schedule?
With fewer culture and language barriers, more companies are switching up their outsourcing strategies and moving toward a nearshore model. They keep their costs low, take advantage of a highly educated, English-speaking workforce, and have greater access to their outsourcing partners.
Without major time zone differences like that between the United States and Asian countries, American companies can keep their workday structure as it is, communicating as needed during normal working hours and adhering to home-based timelines.
