As years go by, it is becoming less critical for organizations to have all their workers together in the same building. Outsourcing practices gained more relevance in the market, and most companies trust third parties to develop significant IT projects. Regarding software development, there are many outsourcing models, the main ones being offshoring, onshoring, and nearshoring outsourcing. All these options differ and choosing the one that better fits your project can be a difficult task. In this article, we’ll explore Nearshoring as a valuable option for software development projects. 

Nearshoring is a trend that has become extremely popular among IT companies in the last few years. This model has become a go-to solution for many companies looking for digital solutions. Many of these companies had critical failures in the past, relying on offshoring services. So, how is nearshore IT services any different? 

 

First things first: What is nearshore IT services? 

Software development is changing the world. Currently, having software is a must-have for companies to keep up the pace, expand the brand, and provide excellent service to their clients.  

Nearshore IT services is one type of outsourcing, where you delegate software development tasks or projects to companies located in neighboring countries or in geographical proximity to yours.  

For a successful nearshoring, ideally, you’re between 1 to 4 hours away from the provider company to ease communication and facilitate personal visits to the office, if you wish to do so. For example, you can find a 3h40 flight from Copenhagen to Lisbon, which would allow a quick one or two days visit to the office where you have your development team. 

 

How can Nearshoring help your business? 

Outsourcing software development could be the right move for your company’s growth and success. By working with highly skilled professionals familiar with your local GDPR, language, and market needs, nearshoring can help the company’s progress, save money, and concentrate efforts and attention on their core business instead of IT solutions. 

Due to geographical proximity, in-person meetings could take place as much as necessary, leading to the constant accomplishment of IT projects. Contrary to working on an offshore basis, with teams on the other side of the world and from different cultures – which might lead to misunderstandings-, nearshoring is easy on the communication side. You won’t have to worry much about cultural differences and barriers, benefiting from straightforward communication between your company and your partners. As you and your nearshoring partner will share the same time zone or, at least, a similar one, video calls, and virtual meetings would be way less stressful to plan and schedule. Fewer communication issues mean fewer project delays.  

Cost-effectiveness is another reason you should try nearshore IT services. Studies indicate that businesses can save up to 50% on operating costs by nearshoring. This percentage could even be more significant considering the current worldwide situation and the general need to work with remote teams. 

If you’re managing a company, you know how hard it is to find the right talent. An in-house, highly skilled IT team is expensive to hire and hard to retain, so finding a partner for nearshoring could be the best option to afford experienced senior developers to answer your customer’s desires and needs. 

Nothing could help your transform and improve your business as a creative and talented team. In such an intensely competitive and digital environment, improving your ways, digital presence and user experience are vital moves to maximize your ROI performance, building a stormproof business, and ensuring your company’s long-term prosperity. 

Collaborating with a top nearshore team with high professional ethics standards can help you mitigate risks associated with security and compliance. IT companies long established in the market are usually aware and well informed about global regulatory standards, establishing risk management plans for their contracts. If any crisis occurs, your project is more likely to be protected if you’re working with an experienced nearshore software development provider.  

Another solid reason to adopt a nearshore IT team is the possibility to improve and simplify your company’s remote working strategy, one of the most critical challenges of this era. The higher demand of the past year for collaborative tools and training regarding remote work became the CEO’s biggest headaches. How to modernize and adapt your company to answer the employee’s demand for freedom to decide where to work from and still make the business work? The experience of successfully working with an IT remote team may be of great help to build your work-from-home model and strategy. Software development companies are, in fact, the ones with the most experience in remote work. They were already testing several tools and processes long before this pandemic hit us, so why not learning from them? 

Nearshoring is all about scalability, agility, and flexibility. Nearshore software development companies can offer you a solution-oriented attitude, helping you scale up your team according to your needs or reacting to a crisis flexibly and quickly, avoiding HR-related costs. During challenging times, being agile is vital for reducing costs by rapidly changing and adapting processes and strategies. Because of that, daily meetings, video calls, and maintaining regular communication are essential when you work with a nearshore team.  

 

Which destination should I choose for nearshoring software development? 

Transferring IT services to countries with lower costs and geographically close can be very advantageous, and that’s why nearshore IT services is becoming more and more popular among European companies in recent years. 

One of the critical factors when choosing a nearshoring destination is geographical position. Similar or strategic time zones – for real-time communication -, short-distance flights and travel costs could be important factors when deciding. These determinants could be of utmost importance to the project schedule and the overall performance of the products. 

But, of course, there is much more to it. Highly skilled professionals, little bureaucracy, and overall political and social stability must also be considered topics before choosing a European nearshore destination.

 

 

In conclusion, a talented nearshore software development partner can provide you with expertise, communication standards, remote infrastructure, and team management. Despite being a crucial element, choosing to nearshore it’s not all about the costs. There are multiple advantages in setting up an external team for your project, especially if it demands an agile and collaborative approach.  

If all these reasons sound appealing, nearshore IT services could be the right choice for you!