As you may know, offshore outsourcing is a method used by businesses to reduce cost and increase efficiency. It is popularly used in Western countries, especially for manufacturing. However, it has its limitations when applied to software development. In order to solve this problem, “nearshore” outsourcing was created as a more sustainable software development model that would ensure better quality and cost control. As software development is now a service, it must follow the demand and supply model. If there is a cut in spending on IT by companies in Europe for instance, then nearshore outsourcing would be an ideal solution to existing problems. If you’re considering hiring a nearshore software company, here’s some information that may help you understand why it may be the best option.
What are the Benefits of Nearshore Outsourcing?
Developers work at home but are closely monitored by a central hub that oversees the progress of development activities. The developers establish a strong relationship with their clients because they are on site which makes them more responsive to client’s needs and requirements.
- Nearshore Development provides better project management as well as real-time feedback on the progress and success of projects. Quality is the biggest concern among many businesses looking at offshore outsourcing. They worry about quality control when the project is overseas instead of nearby where they can monitor the progress. The nearshoring model eliminates many of these fears because both parties are working together in close proximity.
- It is cheaper than offshore outsourcing because it cuts unnecessary overhead costs such as travel expenses, hotels and visas. The Nearshore model also allows for more reasonable pricing structures.
- Nearshore eliminates the need to relocate developers to overseas destinations where they eventually become expatriates.
- It provides accessibility which is more important in global markets. It also gives clients the opportunity to work with developers who are a few steps away from them rather than on another continent.
- It allows for seamless communication between the client and developer, so problems can be addressed sooner resulting in quick resolution. Unresolved issues can otherwise build up.
- Nearshore provides an alternative to offshore outsourcing when the latter is not efficient for businesses. Businesses that plan on relocating their offices overseas can now continue with a nearshore model instead which will still benefit them in the long run.
- It allows existing companies to have more control over projects and gives them better insight into the actual progress of their projects.
- Since project managers work at home, they are naturally more accessible to clients and can respond to requests in a faster manner. This also helps reduce costs incurred from travel expenses and time taken to attend meetings when issues need resolution immediately.
- Many US businesses are concerned about sending sensitive and confidential information overseas. Trust is higher with nearshore outsourcing simply because it’s on your own continent.
- Client/vendor relationships can be challenging in an offshore environment. There’s a time difference, language barrier and country of origin to consider. Having a team located in your own area is much easier for communication purposes and establishes trust between all parties.
Founded in 2012 and headquartered in Northern California, Bydrec is a nearshore software development company that provides expert, bilingual software engineers to clients for their outsourcing needs. We offer highly skilled software developers at a low cost, and we are focused on excellent customer service and delivering customizable solutions. Contact Bydrec by calling (866) 219–7733 or emailing firstname.lastname@example.org for nearshore software outsourcing you can trust.
Originally published at https://blog.bydrec.com.