The pursuit of digital transformation has created a high demand for software engineers, resulting in a competitive job market and increased expenses for hiring local talent. Consequently, a growing trend has emerged where companies opt to outsource software development to countries with lower costs and a more abundant IT workforce. This approach has become increasingly popular among technology leaders hiring virtual teams in nearby countries. When it comes to outsourcing mobile app development services, there are three location-based business models to consider: onshore, nearshore, and offshore. Each model offers distinct advantages and faces challenges due to geographical differences. Onshoring is the most expensive option, while offshore development is the most cost-effective but also carries higher risks. Nearshoring, on the other hand, strikes a balance between cost, quality, and flexibility. In this guide, we will explore nearshore software development outsourcing and its potential benefits for your business.
What is Nearshore Mobile App Development?
Nearshoring is a specific business model wherein a company delegates its software engineering and IT functions to outsourcing firms located in neighboring countries or emerging software development markets within similar time zones. For instance, a UK-based company might outsource its IT needs to countries like Bulgaria or Ukraine. The main objective of nearshoring is to benefit from cost savings through outsourcing while still maintaining a higher level of control over the process due to geographical proximity.
When collaborating with nearshore web app developers, they assume responsibility for the entire software development cycle, which includes requirements analysis, project management, design and coding, testing, deployment, and post-deployment maintenance. The extent of the involvement and scope of work can be tailored to your specific needs and preferences. Similar to offshore outsourcing, nearshore web app development companies offer a comprehensive range of outsourcing services, spanning from custom software development, web development, and mobile application creation to maintenance and support services, IT staff augmentation, and dedicated teams.
What are the Core Benefits of Nearshore App Development?
Nearshoring stands out as a balanced and efficient approach to outsourcing software development. By combining cost efficiency and geographic proximity to the client, an experienced nearshore web app developer or any other nearshore expert can deliver value to your business from a convenient location. Let us dive deeper and discuss the benefits of nearshore app development.
One of the major attractions of nearshore mobile app development is the convenient geographic location. Businesses can avoid the challenges of working with teams on the other side of the world, dealing with time zone differences, and facing difficulties in communications. Instead, by delegating their projects to a nearby outsourcing company, you can enjoy the benefits of outsourcing without the drawbacks of distance. This proximity facilitates easier adjustments to processes, closer monitoring of project progress, and improves the overall quality of the end product.
Nearshoring to countries within your general geographic proximity ensures working with teams that share many similarities in terms of language, culture, and values. This results in a smoother working relationship with fewer barriers and cultural differences. Nearshore teams are typically more familiar with the language, customs, and business practices of the region, which reduces the risks and issues related to communication and work ethics.
Better control over the development process
Nearshore software outsourcing grants enhanced control over your projects due to direct and easy access to the development team, minimizing communication delays. This is especially beneficial for companies that require frequent updates, feedback, and changes, or those needing motivation and supervision from an in-house team. Waiting for a response from an offshore team on the other side of the globe can take hours. A nearshoring mobile app development team works the same hours as you, which enables smooth communication and seamless cooperation.
Wider talent pool
If there is a shortage of qualified local developers, nearshore outsourcing offers an excellent solution. Companies do not have to outsource their projects to distant offshore regions to find the right talent. Nearshore software companies can tap into a vast pool of software developers from emerging markets nearby, increasing the likelihood of finding the perfect fit for your business requirements. You can find specific experts with the help of a nearshore consulting partner that would help in matching your business needs with project requirements. That way, you will gain access to developers who can bring valuable knowledge and skills to the table.
In summary, nearshoring brings several advantages, such as proximity, cultural alignment, enhanced control, access to a wide talent pool, and cost-effectiveness. These features of nearshore app development make it a perfect choice for a business that seeks relevant expertise and tries to avoid the major headaches associated with offshore outsourcing.
Limitations of Nearshoring Mobile App Development
Although nearshore software development offers significant advantages, there are certain considerations you should keep in mind:
- Preference for long-term projects: Nearshore teams may have a preference for long-term projects, as they tend to yield higher profitability margins. As a result, nearshoring might not be the most suitable option for short-term software development projects that require quick execution.
- Potential Increase in labor costs: While nearshore teams generally offer lower labor costs compared to onshore services, there is still a risk of overpaying for resources if the project’s requirements are not carefully assessed.
One additional problem is the limitations of the nearshore talent pool itself. If you work in a region that is not exactly known for its software development hubs, you might be hard-pressed to find reliable experts even in nearby countries. However, you can always cross two or three borders and find the people you need.
Final Thoughts on Nearshore Mobile App Development
Software outsourcing remains an excellent business model for IT companies to reduce costs and streamline development processes while accessing top developers. Among the various outsourcing models, nearshore outsourcing stands out as an attractive option for organizations with sufficient budgets and a need for greater control over their development processes. Nearshore iOS mobile app development presents an excellent opportunity for companies to achieve cost savings, streamline their development processes, and enhance team productivity. It enables businesses to access new markets, establish enduring international partnerships, and diversify their workforce.