Did you know that the trillion-dollar company Google has about the same number of nearshore outsourced contractors as their in-house workers ?
If you have been wondering “what is nearshore outsourcing?” and whether you need to do it for your next software development project for you then this is for you. Outsourcing, especially nearshore outsourcing, has provided so many opportunities and benefits to companies that even the Fortune 500 are using it. In this post, we will try to explain what nearshore outsourcing is and why you should be doing it too.
What is Nearshore Software Outsourcing?
Nearshore Outsourcing is the hiring of individuals or organizations which are situated near the hiring company’s home office but are not a part of it. Companies outsource to contractors intending to divide their workload while taking no chances on the work quality. Established businesses sometimes choose nearshore outsourcing over offshore outsourcing for the various additional benefits it provides. Some of these benefits are explained below.
Why you should Nearshore Outsource your Software Development even if you are an Established Company:
The Fortune 500 companies outsource their software development and other tasks because of the advantages it holds. Microsoft, a $1.042 trillion tech giant, nearshore outsources to contractors, usually suppliers. The external workers may work along-side the Microsoft employees in their headquarters in Redmond , but they still remain under the third-party suppliers. These companies have grown because of their ideas and strategies. Their growth is also because they are (nearshore) outsourcing as well, so it’s time you start doing it too and grow your already established business.
Here are a few more reasons why you should nearshore outsource your software development tasks:
Nearshoring brings Lesser Time Zone Differences:
With you and your contractors located near each other geographically, the difference in time zones is less, or none in some cases. It provides both parties with the opportunity to communicate efficiently. Unlike with offshore outsourcing, you and the outsourced worker can discuss anything within the working business hours. The software developer can be alerted immediately of any issue or update on your software. You won’t have to wait due to a huge time difference between you and your employee. In a mid-cap or large company, time zones difference can cause serious problems with communication. This then causes delays in software deliveries which result in losses to the company.
Better Interaction and Understanding:
When you nearshore outsource to a contractor, the similar or close geographical regions make your interaction easier. Closely-located areas have cultural, regional, and traditional similarities, including the same spoken languages in some cases. It lets you interact with the outsourced employee effectively, allowing them to understand your ideas and requirements more easily.
As the contractor understands your software needs, they can even suggest some improvements based on their experience and skills.
Shared Burden with Skilled Developers:
As an established company, you can not risk the quality of your software. However, at times your team of developers may not be enough to manage your task at hand. Nearshore outsourcing your software development to top 1% contractors means your software will be dealt with and created in a highly effective and professional manner. You will also be able to complete it in good time. Top 1% outsourced developers have usually worked on every imaginable software. You are choosing from a huge pool whereas your own team may just be getting introduced to that area of expertise.
These experts are well aware of the market demands and are able to create solutions according to your audience’s requirements. Such solutions fulfil the customers’ needs and are well-received and add to the growth of your business.
Nearshore Software Development means better management:
With your software development now done by a nearshore contractor, you save time and money. This allows you to focus on the other core aspects of your business. An established company needs proper management. As experienced experts develop your software, you can focus entirely on managing your business in a better way. In this way, you can develop efficient strategies and new ideas.
Telenor adopted this approach for its browsing software Opera sometime after its establishment. Whatsapp chose an external contractor to correct its errors and the leading Swedish furniture company IKEA continues to use external agencies to handle its technical projects and developments.
Economical and Time-Saving:
Like any other form of outsourcing, nearshore outsourcing of your software development is far more economical than hiring full-time individuals. Not only does it allow you to save money by avoiding longer commitments, the fact that you hired individual or agency that is located nearby also makes emergency meetings or in-person talks possible should the need arise.
As both parties are located closeby, they can board flights on short notice and group together for a detailed discussion. Flights will be less expensive and the contractor may not even need a hotel for such a short meet-up.
Similar Regional Rules and Regulations:
Developers need to follow several regulations while building a new application, including GDPR and CCPA. If you outsource your software to a nearshore agency, chances are you both have the same regulations to comply with. If not, you have to spend a significant amount of time explaining the rules of your region and make sure your hired agency or worker is aware of them. Not following your regional regulations can lead to heavy fines, along with more severe consequences.
Who Needs to Outsource their Software Development the Most?
If you’re aiming to complete your project in record time, or if you’re not related to the field of technology, nearshoring is particularly beneficial for you. Ecommerce businesses, hotel chains looking to develop an online system need to nearshore so they can have their employees within reach. Same goes for restaurants needing an online ordering system and companies expanding globally. If anything goes wrong after the implementation of their software, they can immediately contact their designated developers to tackle the issues.
In addition, it’s essential for well-established companies that have international roots. Debugging their existing applications, or developing interesting and innovative new add-ons and features to their projects can be problematic. It might prove a bridge too far for the internal team. Or they may be too busy with something else or run out of ideas. By nearshoring such companies can keep a close eye on their outsourced projects, while welcoming innovative ideas from external workers.
To learn more about Staff Augmentation, read our blog on Staff Augmentation – An Effective Alternative to Nearshoring . If you need more information about developing an MVP using Nearshore Outsourcing then click here.
Digitsory can help you with finding the right experts for the development of your software. Contact us here and for any other details about our services.