Back in the mid-1990s, the word outsourcing had very negative connotations. Often, it meant that people would see their jobs moved to some faraway corner of the world, and that unemployment was just around the corner. The very mention of the 'o' word would stir up heated discussions and create an aura of distrust and division around the office.
The reality is slightly more complicated than that, however. While outsourcing does, by definition, mean that jobs are allocated elsewhere, this does not necessarily mean that staff will be out on the street. Often, it simply means that some tasks will be done by a third party in another location.
The delegation of a limited range of tasks is a key aspect of the focus of Nearshore Software Development, the focus of this article.
A relatively new development, nearshore software development has grown in popularity in recent years.
Nearshore software development is an outsourcing model where a client engages a specialized agency or a team of software developers located in either neighboring countries, or countries within a 1 to 3-hour time difference (hence the prefix 'near'). In this model, the client company engages the nearshore team to perform software development only. That is, only that particular facet of the client company's work portfolio becomes outsourced.
Nearshoring does have some similarities with other outsourcing models, including offshore and onshore models, with one key differentiator: the timezone. The closer the software development is, the easier the communication between client and software developer team becomes. This tend to lead to better outcomes and a more positive experience overall.
Once companies/managers feel confident and experienced enough to manage resources remotely, they can extend access to global talent pools. Certain specialized agencies, including AllSTARSIT, have the right expertise to assist managers accomplish their nearshoring projects.
Clients resort to nearshore software development for a variety of reasons: a shortage of local talent, for instance. The establishment of nearshoring centers enables clients to tap into international talent pools, and enables the client company to remain competitive in an increasingly challenging environment.
One of the promiment reasons why earlier outsourcing projects were particularly challenging was because of the sheer distance between the client and the outsourcing location. In some cases, the two could be separated by thousands of miles, perhaps a day (or longer) of flight time. Current technological advancements have lessened the impact of long-distance outsourcing, but one of the key advantages of nearshoring is that the client and the software development teams are never more than four time zones away. This means that working hours are roughly the same, which enables a far better communication strategy, and crucially, favors a much quicker reaction time if something needs to be resolved in a timely fashion.
While on- and offshore models do work, they have their drawbacks. For example, the client company might have limited control over the hired teams abroad, which might result in poorer outcomes.
Nearshore software development means that the developer team is in relatively close geographical proximity, sometimes less than an hour's drive away. This enables better communication and allows the client to maintain a close eye on the project and the resources allocated to it.
In earlier outsourcing models, work was shipped to countries that, while offering better cost efficiency, might have a radically different cultural approach to work practices. This would cause friction and difficulties on both sides.
Nearshoring models mean that the teams are likely to be in neighboring countries, or countries that aren't too dissimilar in terms of culture and working practices.
Each client company is a world unto its own, and the rationale for choosing nearshoring or other outsourcing model depends on corporate goals, company culture, available budgets, etc.
But generally speaking, a company should consider nearshoring based on these factors:
Many companies, particularly startups, have limited budgets. In these cases, affordability becomes an issue, and if there are no affordable development teams locally, nearshoring emerges as a great option.
This depends on the company's long-term plans and goals. Sometimes, a company might limit its output to just one application or project, which might not justify maintaining a full development team onsite. By nearshoring a project, the software development team can build and maintain that application on behalf of the client company for the entire lifecycle of the project. This saves the client cost in wages, office space, and overheads.
The company's geographical location will be one of the determining factors in opting for a nearshoring software development model. In some cases, client companies might not be able to find the right software engineering talent locally, and rather than looking for an offshoring option where the development team might be located in the other end of the globe, nearshoring offers the perfect choice.
The cost of nearshore can be a barrier, but the major reason is lack of access to talent pools of high-quality engineers combined with a lack of ability to find the required experts locally.
Let's compare nearshoring and offshoring, two common outsourcing models.
Let's do a quick rundown of the advantages and disadvantages of nearshore software development.
Poland is a land of geographical beauty and diversity. From lush, ancient forests to mountain ranges and almost 800km of coastline, the country is as varied as it is unique.
The country's natural charm is matched by its offering of a large contingent of talented software engineers, almost 430,000 strong, which form the basis for a rather attractive outsourcing offering.
Why the talent pool in Poland is so attractive:
Considering a nearshoring development partner? AllSTARSIT provides best-in-class nearshoring services to a range of international clients just like you. We have the experience, the drive, and the know-how to create a tailored solution for your project.
We offer faster hiring timelines that support a cost-effective, quick-to-market strategy. Our specialized staff's mission is to assist you in assembling a team of talented software engineers, QAs, or technical support staff and get your project off the ground as quickly as possible.
In the nearshore approach, it is very important to monitor/track existing and new talent pools, plus the level of salaries and local government policies to build cost-effective teams of experts. Only companies with global presence and a flexible approach to business as part of their culture can do that. AllSTARSIT has nearshoring down to a fine art. With our help, you can have a new development center up and running faster than your competitors.