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- What is nearshore outsourcing? Is nearshoring right for you?
We’ve already known a lot about Offshore software development and Onshore software development, so let’s learn more about Nearshore outsourcing in this article.
Every business desires to obtain low-cost, high-quality services. The problem is that such services are not always available in a company’s home country. As a result, the only way to obtain the necessary assistance is to hire experienced personnel from abroad.
However, time-zone issues, different management approaches, cultural inconsistencies, and other factors can impede productivity and harm business. That’s precisely the case when nearshore outsourcing is the best option.
Nearshore outsourcing has emerged as one of the most practical methods for businesses to expand their global talent pool and gain access to world-class skills without incurring high costs or infrastructure development.
Definition of Nearshore Outsourcing
Let’s start with the nearshore outsourcing definition.
Nearshore Outsourcing: ‘Close’ Geography Fills a ‘Far-Reaching’ Technological Gap
In terms of definition, nearshore outsourcing (also known as nearshoring) is delegating some IT-related work, such as mobile application development, to companies in neighboring countries.
Assume you live in Germany and want to delegate some work that cannot be done in-house to a team from another country. Simultaneously, you’re looking for ways to cut costs but don’t want to deal with time-zone offsets. In this case, you might consider looking for talent in neighboring countries such as Ukraine.
Read more: What’s the Difference between Onshore vs Nearshore vs Offshore?
Benefits of Nearshore Software Outsourcing
Although nearshore software outsourcing advantages and disadvantages are hotly debated topics, this article focuses on its benefits. Let’s look at the edges of nearshore software development and how your company can take advantage of them.
Naturally, there would be no point in outsourcing if there were no cost savings. Using a software company rather than hiring it internally saves money on acquisition, lowers HR costs, and distributes additional charges (including non-IT expenses).
The development of close-shoring software requires you to provide guidance (which is a requirement for all projects), but you do not have to divide the project into multiple teams or assign priorities. Instead, your software outsourcing company can handle the majority of the work. A competent nearshore software outsourcer should have a large, focused staff.
Fewer cultural conflicts
The level of communication efficiency is influenced by factors such as language and cultural background: the fewer the differences, the better. Your staff and the employees of your nearshore outsourcing company most likely know English at a high level; however, if you all speak the same language or languages similar to one another, all of the work will be completed more quickly.
The same can be said about cultural similarities. No one wants to postpone a release date simply because the outsourcing partner has days off from national holidays that they do not observe.
Assume you and your nearshore outsourcing provider both speak the same language. Even if you both have excellent English skills, your communication process may be faster and more transparent in this case.
One thing appears to be simple but is not: time zone. Hiring a nearshore development center eliminates time-zone issues that can hinder effective communication. In most cases, a client-company and a services vendor live in the same or nearby time zone, so they are not affected by time differences and can communicate during regular working hours.
This saves you from losing sleep or working on an unusual schedule, but it also allows for collaboration between your internal growth and your external employees.
One of the significant developments in nearshore software outsourcing is a team with similar cultures, a common language, and technical competence that allows the external team to easily integrate into your existing team. Respect for a peer with an equivalent level of technical knowledge increased as coordination and interaction improved, as did the rate at which internal and external resources created a companion company.
As a result, this simplifies the knowledge transmission required to help your external team understand and adapt your procedures and quickly update the information on your application. By accelerating the start-up and knowledge transfer, your external team may be able to provide value sooner, improve your ROI, and ensure that your target is met.
Improved facilities are another benefit of nearshore outsourcing. You can be confident that the infrastructure is in place because several prominent nearshore locations are designed to meet your business needs. The choice of a partner in a country with stable internet and communication infrastructure ensures that your project is not delayed due to unforeseen circumstances. This is not a question, but it is essential to consider if your company outsources to other countries.
Despite being on the same continent or territory, there are differences in knowledge, skills, experience, and development potential in the IT industry between countries. Large and small businesses saw the costs and amount of time talent had to be spent (remote employees, relocations, benefits) to acquire this talent. Indeed, some Southeast Asian countries for software outsourcing, such as Vietnam and Malaysia.
Furthermore, due to the State’s policy of retaining and training young resources – enthusiasm and passion – we have a team of nearshore outsourcing teams that are far superior to other countries in the same industry.
How to choose the best Nearshore Outsourcing Companies
Nearshore outsourcing companies can help organizations in outsourcing provide quality service at a lower cost while also facilitating the adoption of the organization’s business processes and protocols that their in-house team uses.
Hiring nearshore outsourcing companies, like onshore and offshore outsourcing models, can work to your advantage, but only under one condition.
Before hiring external personnel to supplement your in-house team, you must weigh all pros and cons and conduct extensive research.
Before making a decision, consider a company’s location, its country’s economy and laws, and its developers’ level of training and experience. There is no right or wrong answer here; it all depends on your business goals, the amount of money you have to spend on a project, and your overall vision of future collaboration with a team you want to hire.
InApps Technology, as one of the most prominent software outsourcing companies in Vietnam, has had the honor of working with many corporate customers from all over the world, including the United States, UK, Europe, Canada, and others. As well as countries/regions close to Vietnam, such as Singapore, Hong Kong, and Australia.
InApps is expanding our range of services/products in Vietnam’s ‘hot’ industries: Fintech, eCommerce, Healthcare, Travel and Tourism, Blockchain, and so on.
Contact us using the form below to receive a free quote and consultation!
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