With a market growth rate of 8,9%, there’s so much buzz around offshore software development nowadays. However, offshoring has some drawbacks, especially when it comes to your control over the outsourced project. To avoid these issues, consider nearshoring, which is a great solution for those who want to take the best of offshore software development. What is it all about? Nearshoring is when you deliver your tasks to a third party that is geographically located not very far from you. It’s just like offshoring but with some geographical flavor.
So, when a hypothetical British company goes for nearshore outsourcing, it seeks an offshore company from the European countries instead of going with a popular Indian offshore solution. And don’t think that we want to underestimate the proficiency of Indian developers! It is not necessarily about proficiency. Finding an offshore partner in a nearby country brings far more specific benefits. As a company that has been working with the best IT nearshoring practices for six years, we’re ready to share our knowledge with you.
5 Main Reasons to Consider Nearshoring
That’s when the actual “meat” of this article comes. There are so many reasons to go for software development nearshoring. But, from our experience, the most relevant ones are:
- The opportunity to avoid cultural barriers;
- Cost-efficiency;
- Avoiding time zone challenges;
- No language barriers;
- Process control.
Let’s discuss them in more detail.
1. Business relations without cultural barriers
Believe me or not, cultural differences can easily ruin the most promising outsourcing cooperation. Software development nearshoring is what helps you avoid this problem. In most cases, understanding the mentality and the cultural aspects of software developers from a neighboring country is much easier than understanding people from a distant and completely alien cultural domain. How about an example?
A Swiss entrepreneur starts a partnership with Chinese specialists by bowing in the wrong manner. This partnership is very likely to be disastrous from the start because the Chinese may perceive such a bow as disrespectful. Needless to say how the lack of respect and trust may ruin the cooperation. Meanwhile, while working with a partner from Germany, the Swiss will go with a simple handshake. This ritual is common to both parties and there cannot be any misinterpretation. That’s the point. When two cultures have similar values and rituals, there’s much less space for misunderstanding.
2. Cost savings
This benefit is pretty general for software development outsourcing. Let’s be honest, the desire to find a lower development price is often companies’ main reason to search for remote vendors. And, as long as nearshoring may be viewed as an offshoring category, this cost-efficiency is one of its main benefits. Yes, we know that, sometimes, you have to search in another part of the world to find the lowest price. But, believe us, if you search well, you’ll find great and cost-efficient partners in much less distant states. Just research general rates over neighboring countries and deliberately review their markets. Or ask someone for useful tips on nearshoring. Think logically, if an offshore development company searches for clients in another state, it should sustain the competition with development businesses from this state. And cost-efficiency often becomes a factor that helps such a company stand out.
3. No time zone difference
Cooperation with a partner from a different time zone may bring many inconsistencies. Sometimes, it means that you should set up a meeting early in the morning or late in the evening just to “catch” your partner’s working hours. And there are hundreds of stories about issues brought about by time zone inconsistencies. So many questions may remain undiscussed and so many crucial meetings may be just canceled! When you go for IT nearshoring services, you find a partner who lives in the same or similar time zone. And that’s the point. The problem of time zone inconsistency just ceases to exist. Those who have an experience in offshoring to distant countries will tell how crucial it can be for healthy cooperation.
4. Fewer language barrier problems
We’ve already mentioned cultural proximity as a great benefit of nearshoring. But linguistic proximity may be an even more significant benefit. As a result, you:
- don’t need to hire a translator for communication;
- easily compile documentation without asking for legal translation;
- understand your partners much better and avoid misunderstanding.
These benefits mostly apply to the cases when you outsource your project to a country with the same language. For example, if you are an Austrian entrepreneur who works with German partners. Meanwhile, many neighboring countries have completely different languages. Still, it is much easier to find translators and establish communication with partners from such states. In most cases, geographical proximity means that there already exists a network of professional relationships between businesses from the two states. This, in turn, means that there are many bilingual specialists ready to facilitate your international cooperation.
5. Improved control over the process
Sometimes, to control the process, you should go to the place where your product is developed. And software development is not an exception. Maybe you just need to meet your nearshore development team in person. Just go to their place and spend some time with these guys. This act may produce an impressive impact on your cooperation! And, surely, visiting your partners is much easier when they live and work in a nearby country. If you want to pay them for monthly (or, at least, annual) visits, you’d better avoid partners from another part of the world. This may cost you too much time and money. As for nearshoring, sometimes you can even visit your software developers every week. Just make sure that you don’t become too annoying!
Wrapping Up
So, what was it all about? The key insight from this article is that nearshoring is, actually, a great way to get things done in a cost-efficient and secure way. Collect the main benefits of software development outsourcing and avoid the main drawbacks of this strategy. Whether you seek consulting or full-cycle development, nearshoring may become your solution. There’s always an option of asking for some quality help when you’re searching for perfect nearshore developers. So, don’t hesitate to consider nearshoring. Perhaps, this strategy will help you open the gates to your most ambitious goals and achievements.
FAQ
What is nearshoring?
Nearshoring is when you delegate your tasks to remote vendors who live and work in a country that is geographically near.
Is nearshoring reliable?
Yes, it is the most reliable way of offshore software development because you’re much closer to your vendors, which brings you more control over them.
Is nearshoring less expensive than in-house software development?
Yes, if you seek well, you’ll find a nearshoring partner that costs you much less than an in-house team.
What is the difference between nearshoring and offshoring?
In both cases, you delegate your tasks to an offshore team. However, in nearshoring, you cooperate with a partner from a nearby country.
