How does Nearshore Outsourcing work

Incorporating an IT (Information Technology) team into a company is very expensive for two reasons. In the first place, because several professionals with different specialties and skills are needed to be able to carry out all the tasks. Then, because they have to be kept updated and for this there are some expenses such as training, events and courses that allow them to continue creating competitive and innovative systems. It is no coincidence that the trend in the world is software development outsourcing.

Outsourcing is a strategic decision and implies placing trust in another company. Particularly in the software and applications development industry, it involves delegating the conceptualization, design, execution, maintenance and updating of technological systems.

According to State of Software Development, in 2018 52.5% of the companies surveyed already claimed to have contracted external software projects at some point. The 2020 report suggests that, of those who have outsourced, 56% have done so with specialized companies.

Keep in mind that there are onshore, nearshore and offshore software developers. Understanding what nearshore outsourcing, onshore and offshore means with its differences and advantages and disadvantages in each case, can help you make the best decisions when hiring.

Almost overnight, the world has become remote. Technology and digital transformation came with a unique overwhelming force and became absolutely relevant in most corporate strategies. The objective? Simple: adaptation to the new reality.
We are still between what is no longer and what is not yet. The old model no longer works for us and the new one is not ready yet.

But do not worry! We believe that many things will change for the better in this scenario of chaos and collapse. This requires discipline and stamina to maintain these transitions until we are fully adjusted.

We know that building this new normal is a great challenge. We also know that is not easy at all, but, it is not impossible either. A solution in this scenario where collaboration is essential is nearshore outsourcing. The Nearshore strategy is basically hiring a remote team that is geographically close to your company. This guarantees a number of corporate benefits, which we will talk about below.

There are many reasons for companies to choose nearshore. The main ones are cost reduction, logistics and cultural proximity. And the main motivation is to scale processes, implement projects and, of course, increase profits.

In times of pandemic and office retirement, it is essential to maintain productivity in a safe, efficient and intelligent way. Nearshore is the easiest way to remotely expand your team, achieve scalability, and stay competitive. This can be a game changer for your business.

Why choosing a Nearshore strategy?

The main key for the perfect functioning of a nearshore ecosystem is communication. The exchange between the team and the manager is extremely important in any project. An aligned, transparent communication that guarantees everyone's visibility is the key to success.

The nearshore practice must be aligned with the company´s business objectives. In this sense, cultural proximity, command of the language and a perfect knowledge of the market are essential. Ideally, the corporation should choose its nearshore partner with all these requirements in mind.

Nearshore advantages

- Native interface: Cultural closeness guarantees clear communication and a comprehensive visibility of the project.
- Similar time zone: Work schedules, daily meetings, or short trips are not a problem!
- Market knowledge: Understanding the market and transmitting this knowledge to the team makes the difference when it comes to designing strategies and, of course, executing them as well.
- Geographic proximity: This has much less impact in terms of corporate travel and makes communication easier.
- Cultural and linguistic similarity or proximity: Nothing better than an interface that is inserted into the corporate reality in which the client works to understand the macro and micro scenarios.

Choosing a nearshore outsourcing strategy is simple, but you need to be very careful when choosing your partner. Technology and experience are the key to project success. Whatever your choice, you need to dig deeper and understand the change your company will have to make to operate in this new model. Identify which technologies can improve your processes and strengthen or even create your business culture.

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