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Nearshore software development is a form of outsourcing that lets businesses work with an external vendor to develop and maintain their digital products. Instead of relying on an in-house team, which can be extremely costly, or going offshore and dealing with the language barriers and cultural differences (and more costs), nearshoring allows your company to access skilled professionals from another country at reduced rates without compromise. Nearshore teams are high-quality and reliable, offer high returns on investment, help reduce the risk level involved in using third parties for business purposes, and allow for seamless workflows.
Nearshore services allow you to get the best of both worlds, a highly-skilled and productive software development team that costs less than local or onshore teams.
Nearshore services allow you to get the best of both worlds, a highly-skilled and productive software development team that costs less than local or onshore teams. For example, if you’re an enterprise customer and your company is growing rapidly, nearshoring can help you scale up your development team quickly without having to hire more staff on-site.
If you’re a small business looking for an affordable way to increase productivity without hiring a full-time developer, nearshoring may be the solution for you too. The reduced time zone distance allows for more efficient project management and communication with offshore developers.
Lower pressure on your internal teams
Nearshore outsourcing can help your internal teams focus on higher value work.
This is because offshore software development doesn’t require a lot of heavy lifting from your internal teams. In fact, most of the time it’s less about managing the offshore team and more about letting them get their work done while requiring less effort and input from you or your coworkers. This means that you can spend more time doing what matters: creating better products for customers, improving office operations, working on long-term strategic initiatives, etc…
The benefits of nearshore outsourcing are not just limited to removal of pressure on internal teams; they also include lower costs due to reduced travel time and other expenses associated with managing an offshore team.
Lower the need for regular recruitment
In order to achieve a healthy, holistic business culture, you must look at the ways in which your current practices could be improved. One way to improve productivity and keep costs down is by reducing the need for regular recruitment and retention. Nearshore software development can help with this by opening up new opportunities for team building and growth within your organization. Because teams are close together geographically and can interact regularly, they have an opportunity to get to know each other better than if they were separated by distance or time zones. A closer relationship between employees leads them to feel more invested in their work environment—and therefore more likely not only to stay with the company but also expand their skillsets independently when necessary without having to worry about finding another job elsewhere first!
Increase productivity
You can increase your productivity by increasing the number of developers you hire, and by increasing the number of projects you work on. Nearshore software development provides an excellent opportunity to do both.
The first thing is that nearshore development means hiring fewer people, which means less overhead for firms. This allows them to be more selective in their hiring process, looking for only top-tier talent from lower-cost countries in Latin America. The second thing is that working with nearshore professionals makes it easy for companies to scale up quickly when needed without having a negative impact on quality or speed. This also helps avoid overstaffing as well as understaffing where you want to be careful with your budget but not overburden your team.
Optimize efficiency and manage cash flow
There are several benefits to nearshore software development, including:
- Reduced need to hire local staff. You don’t have to worry about the high cost of retaining employees, or hiring and training new people. You can scale your workforce quickly without having to invest in expensive office space and equipment.
- Reduced need to pay for expensive office space and other expenses associated with physical offices in different locations around the world. Instead, you can get all you need from a single location—eliminating many costs that would otherwise apply if each team member had their own workstation at home or in some other remote location (e.g., coworking spaces).
- Reduced total cost of ownership (TCO) for software projects since nearshore teams generally charge less than local ones—and this includes everything from salaries paid out over time through process optimization and great work dynamics-
Leverage specialized technical capabilities
- Use a nearshore development team to leverage specialized technical capabilities.
- Latin America has great talent around Frontend, Backend, Mobile, AI and Machine Learning, Cloud and DevOps.
- Example of how to leverage specialized technical capabilities: When you have an idea for a new product or feature you can hire developers in Latin America to work on your project from start to finish without having to send anyone from your team overseas.
Facilitate knowledge sharing
When it comes to knowledge sharing, it’s key that the team is working together. This means making sure that your new development partner has a strong understanding of your business domain and audience, as well as any specialized training on these topics. By having your engineering teams work together in this way, you can ensure that they are communicating effectively and sharing knowledge properly. Often we find that when teams work remotely they have less opportunity for social interaction which makes it more difficult for them to share information quickly.
A good way to facilitate this kind of communication is by holding regular meetings between the two teams so they can discuss what they have been doing over the last few weeks or months. Having these types of meetings will help ensure that everyone knows what each other has been working on recently, who has been involved and how things are progressing towards delivery milestones.
As you can see, there’s a lot to love about the nearshore model. It’s a win-win for everyone involved because it helps your internal teams be more productive and efficient overall. If you want to learn more about the nearshore model and how we can help you get started, reach out!
