Finding experienced tech specialists has become increasingly challenging in recent times. The demand for virtual teams of software engineers and quality assurance experts is projected to grow by 22% annually from 2022 to 2030. This surge in demand will create a substantial shortage of tech talent, resulting in approximately 85 million unfilled software engineering positions by the end of 2030.
To address this issue and drive technological innovation or sustain critical projects, businesses will need to explore opportunities beyond their home countries to find suitable talent. One solution that has gained prominence is software team nearshoring. But what exactly is nearshore development, and what benefits can it offer to your business? More so, how do you use the nearshore development team to its full potential and maximize the success of your project? Read further to discover the answers to these questions.
What is Nearshore Development Team and What are its Benefits?
What exactly is software team nearshoring and how does it differ from offshoring? Let’s clarify this concept first. Unlike offshoring, where businesses establish partnerships with distant countries, nearshore software development teams are formed in neighboring countries. Basically, nearshoring and offshoring are the same type of cooperation between you and your software vendor. Whereas offshoring implies cooperation with a vendor on the opposite side of the globe, nearshoring brings vendors closer to you. What does that mean for your business? Well, software team nearshoring offers a number of benefits to your business.
Fast team formation and scaling
Nearshoring offers several advantages, including the ability to tap into a broader talent pool. By expanding the search to nearby countries, businesses gain access to thousands of skilled experts who can quickly fulfill their tech needs. For instance, Germany faced over 96,000 unfilled IT positions in 2021, and searching for talent in countries like Bulgaria and Ukraine can help alleviate this shortage.
Nearshoring facilitates effective communication with software development teams due to several factors:
- Close or same time zone: Cooperation is smoother when there is little time difference, as opposed to working across distant time zones.
- On-site visits: In-person meetings are instrumental in effective communication. Traveling to a neighboring country is more feasible than going to a different continent, making frequent visits common for experienced nearshore development teams. This fosters a better understanding of processes, culture, and business values.
- Cultural similarities: Neighboring countries often share cultural similarities, making it easier to find common ground. This alignment also contributes to similar work and business ethics between in-house personnel and the nearshoring team.
Flexible cost allocation
Working with a nearshore team provides opportunities to optimize expenses. Software outsourcing offers lower developer rates from local vendors as a primary attraction. Furthermore, nearshore software development teams offer various engagement models to cater to specific needs and budgets:
- Fixed price: Suitable for shorter and simpler projects when you have a clear project vision and need assistance with specific features.
- Time and material: A highly flexible model where developers are hired with fixed hourly rates to handle specific tasks.
- Dedicated development team: A complete development team exclusively devoted to your project, prepared to be a long-term partner.
Greater control and influence
Software team nearshoring offers businesses enhanced control and influence over the development process compared to offshoring. By having teams located in nearby countries, they become more accessible and responsive to your needs. Additionally, the shared cultural values between the company and nearshore teams contribute to ensuring projects are completed with the same level of quality and efficiency as onshore teams.
Diversity and innovation
Nearshore teams also bring a wealth of diversity and innovation to the collaboration. The presence of nearshore developers introduces fresh perspectives to projects, ensuring that the final product meets and even exceeds expectations. This diversity of thought can be particularly advantageous for companies seeking a competitive edge, as the nearshore development team often provides valuable insights into industry trends and new approaches.
Opportunity for market expansion
Engaging with a nearshore team in another country presents the potential for new business opportunities. These teams can offer valuable insights into local markets, facilitating a swift and seamless expansion for your business. Notably, venturing into a new market through nearshoring can result in cost and resource savings since you won’t need to deploy personnel from your home country to manage the project.
Facilitates regular visits
Nearshoring facilitates frequent visits between your team and the nearshore team. These regular visits enable a deeper understanding of the nearshore team’s work and ensure that the development process aligns with your business objectives. The ability to meet face-to-face allows for detailed discussions, making adjustments more manageable and fostering effective collaboration.
Approaching Nearshoring for Success
Software team nearshoring presents an excellent opportunity for tech-based businesses to access diverse talent and enhance service quality. But how do you approach nearshore development to make sure your project achieves the intended results? To ensure a successful nearshoring experience, consider the following steps:
Assess your needs and project scope
Begin by evaluating your specific requirements and determining which projects are suitable for nearshoring. Projects like web and mobile development, software testing, and database management often align well with nearshoring. However, projects involving high confidentiality or sensitive information may be better kept onshore. At the same time, if you and your vendor are located in the EU, it is highly likely that both of your businesses adhere to the same regulations.
Choose an experienced nearshoring partner
Select a nearshoring partner with a proven track record in the industry. Their expertise in local and global markets will be crucial for the success of the collaboration. Partnering with experienced professionals ensures a better understanding of customer demands and helps your business stay competitive. Select a partner who has already worked on similar projects and has relevant experience in your industry.
Establish clear goals and timelines
Create a well-defined timeline and set clear goals before commencing the nearshoring project. Also, establish expectations for communication and collaboration between your team and the nearshore team. This clarity will facilitate a smoother project execution, keeping it on track, within budget, and meeting quality standards.
Final Thoughts on Nearshore Development
Overall, nearshoring can offer your IT business a competitive edge by accessing top talent. When approached strategically, it opens up new growth opportunities. Choose a reliable nearshore partner with a strong industry background to maximize the benefits. A trusted nearshore development and consulting partner can help you leverage the advantages of a nearshore team by connecting you with top-level talent from across the globe. With the right expertise and insights, a vendor can help you make nearshoring work effectively for your business and stay ahead of the competition.