Did you know that 70% of the IT market revenue came from Outsourcing in 2021? For this reason, analyzing in depth and strategically all the possibilities of Outsourcing is essential for any company that needs to stand out in the market.

The accelerated development of technology in recent years and the isolation forced by the Covid-19 pandemic, has further intensified the demand for technological solutions and 100% remote teams are the new normal.

In practice, IT Outsourcing is an outsourcing of technology services. Banks, large retailers, edtechs and technology companies in general are betting on outsourcing.
The practice is very common and can be the perfect solution for companies that need technical know-how and excellent specialized professionals, but don't have the time or the necessary tools to prioritize internally.

In addition, one of the main advantages of outsourcing the IT team is cost-effectiveness, reducing expenses with hiring, equipment, labor charges and maintenance.

Through the use of a mature and disciplined process, the nearshore model is much more efficient than an offshore model. The term is used to describe all outsourcing services provided to areas geographically close to the end customer (e.g. services from Eastern European countries to Western Europe).

Some analysts currently describe services that are provided from a country adjacent to or close to the final destination.
The original value proposition of the Nearshore model (or nearshore 1.0) is based on the following benefits for customers: proximity and same time zone, cultural compatibility and ease of doing business, and cost optimization.

These benefits simply represent the Nearshore value proposition, and are available to any company established in a location that enters the model, something easily justified by experienced global sourcing professionals. That's why many suppliers decided to implement this model, since in turn, the Nearshore proposal is effectiveness.

Although the hourly rates of Nearshore locations tend to be slightly higher than those of lower-wage locations, the total cost of these offers end up being similar or lower than the Offshore model, which, with its efficiency, is able to work in destinations close to the United States and in the same time zone. Through the use of an experienced and disciplined process, the Nearshore model is much more efficient in achieving high percentages of work in economical locations compared to Offshore models.

Experience and Discipline are the key points needed to achieve high levels of Nearshore leverage. Companies are increasingly turning to offshore software development to reduce overhead and labor costs.

They find in Nearshore the most productive and economical way to carry out their projects. Many refer to Nearshore as a team extension for IT resources, where you don't have to hire in-house and worry about resources. Nearshore can be the game changer for your business!

Nearshore is almost like having an in-house team. In some cases, you'll manage the work the extension team is doing, but you don't have to worry about the costs of hiring, paperwork, social benefits, training, or even equipment.

Your company needs to remain competitive by ensuring that resources and business processes are collaborating effectively, reducing costs and improving the quality of the business.

For that, you can rely on adequate nearshore outsourcing to discover opportunities and overcome challenges with your resources, projects, solutions and business operations. With an adequate partner, you can identify critical issues and resolve them, improving the gap between business, people, processes and technology.

In conclusion, nearshore is the outsourcing of IT services in neighboring countries, taking into account your company's geographic proximity and other common cultural characteristics. Among its advantages, we can find less time difference, cheaper labor compared to the onshore model at favorable exchange rates, highly specialized professionals, unique insights with few cultural differences, and short-term trips are possible and cheaper.

In this model, outsourcing takes place in another country, with the main objective of reducing costs. It can be an interesting option, since a quality technology can have a lower cost, but the huge cultural barrier is a difficulty. The model has some advantages, including hiring a specialized team at a lower cost, cultural difference can bring new approaches to solving problems, and less bureaucracy and regulations, among many other benefits.