Nearshore development is a method of outsourcing software development services. Different outsourcing models have been growing in popularity among companies that need to get their software projects completed. Companies may decide to outsource for various reasons, and nearshore outsourcing is often a favorable choice for outsourcing services.
Many world-famous companies have utilized nearshore development services and centers to carry out both small and large projects depending on their needs. In-house teams are becoming less necessary for companies when they need to do quick development work or carry out temporary development projects.
Outsourcing services can help companies save time and money, but it also has its disadvantages. Before trying out nearshore development for your own projects, you should understand the full scope of nearshore development services and how they may benefit or derail your company.
Why You May Need Nearshore Development Services
Nearshore development is a form of outsourcing where your company passes on certain software development projects or tasks to companies that are within close geographical proximity to their country.
The ideal time difference between a company and its nearshore development provider should be one to three hours. The idea of nearshore development is that there is only a small-time difference between the company and its out-of-house team to minimize the potential complications that arise from offshore development.
Nearshore development is a valid option for many companies, but not all need nearshore development services. Therefore, you should evaluate your company to determine whether you need nearshore development services or not.
Here are some signs that your company may want to utilize nearshore development services.
Duration of Project
If your business plans on carrying out a series of complicated projects, creating an in-house team that will work together, in the long run, may be more advisable. In-house developers and team members benefit from a deeper level of teamwork built by working together for prolonged periods, which will be beneficial for your company if you have long-term work.
However, if you need a team to carry out a single project that is not complicated, a nearshore development team is likely ideal. Instead of spending the money that you would have on office space and benefits for an in-house team, you can outsource your work to a nearshore developer for the project’s duration.
Budgeting
If your company is on a budget for a project, hiring a nearshore development team is ideal. This allows you to cut the costs that you would have spent on the hiring process, renting and furnishing an office space, and the benefits and overheads you would need to provide for an in-house team.
Nearshore development teams only need to be paid their hourly rates for work, saving you a lot of money that you would have spent on an in-house team. This is why nearshore services are ideal for companies on a budget.
Proximity
If your company has decided to outsource, nearshore outsourcing has the benefit of proximity over offshore outsourcing. If your company needs to outsource, consider nearshore outsourcing by looking at the development companies close to you.
Your company should also consider nearshore outsourcing if you have been working with offshore development teams for a while and have suffered setbacks from it. With a nearshore team, you don’t have to deal with large time zone differences, tedious flights to visit your team, and expensive travel costs.
Finding Good Talent
Your company may need nearshore development services if you cannot find qualified and efficient developers onshore. For example, your business may be in a time crunch for workers and not have the time to go through the process of hiring workers and vetting potential employees to create an in-house team. Nearshore development companies have a ready-made team that can get to work quickly and offer top-tier services that match and rival those you may find locally.
Advantages Of Nearshore Software Development
Nearshore outsourcing is a very popular model of outsourcing software development work. This is because, with nearshore development, you receive a lot of advantages for your company. Some of these advantages are outlined below.
Little Cultural Divide
Working with nearshore development companies means that the cultural divide between your company and your outsourced team is not as wide as if you had opted for offshore development. This is a huge advantage because differences in cultural practices, workplace etiquette, and culture can cause friction or confusion in some outsourcing cases.
With a nearshore company, there are more similarities in culture than differences, allowing for better teamwork and collaboration between both parties in a project.
Cost-Efficient Outsourcing
One of the main benefits of all forms of outsourcing is that they are cheaper than hiring an in-house team or using onshore development. Outsourcing software development services significantly cuts down on the costs that would have been involved in getting those services.
This is because when you outsource, you don’t have to pay for employees’ workspaces or hardware, and countries you outsource to will likely have cheaper rates. Nearshore outsourcing also has an advantage because the exchange rate of currencies may not be too high, which reduces the cost of payments.
Easy Collaboration
Nearshore development services allow your company and offshore development team to collaborate easily and smoothly. In addition, the short distance between the two countries means you can easily communicate with each other when needed.
This helps with project management because you can easily handle brainstorming, problem-solving, and team meetings without any added stress. In addition, in situations where face-to-face meetings are necessary, your team can easily make the trip to the nearby country where your development team is located.
Little Hassle With Time Zones
Time zone differences raise a huge issue with some outsourcing models. Large time zone differences can cause hindrances to the flow of work with your projects and communication between team members.
With nearshore development services, the time difference between you and your outsourcing company is only a few hours which means that you can synchronize work hours and have better harmony when working. Offshore outsourcing services do not have this advantage as there is usually a very large time difference between the offshore development team and the rest of the in-house team.
Regulatory Bodies
The proximity of the countries also means that there will likely be similar regulations that you need to comply with. When dealing with software and web development, businesses have different regulatory bodies to answer to, and regulations can sometimes vary from country to country.
Quality Software Development Services
Outsourcing your software development services allows you to get access to quality development services and experienced developers without the time-consuming hassle of going through the hiring process.
Development companies that provide outsourcing services make sure to create talented and experienced teams made up of developers that are great at their job. This makes it incredibly easy to access high-quality development services for your business by making use of a nearshore development service.
Hiring nearshore development services also provides easy access to a range of software development professionals for different aspects of your project. Moreover, because the teams are already built and experienced, you don’t have to worry about trying to foster harmony or cooperation between team members.
Gain valuable insight into onshore and offshore software development with our executive’s guide.
Read Our Guide
Disadvantages Of Nearshore Development
Nearshore development is not without its flaws and faults. When considering a nearshore development company to outsource your projects to, you may want to consider the following factors.
Offshore is Cheaper
Of all the outsourcing models that companies may employ for their software development needs, offshore outsourcing remains the cheapest. Of course, nearshore development may provide lower rates than onshore development, but it is likely that the difference in rates would not be much and may even be negligible in some cases.
The price of your nearshore development services ultimately depends on your location, and it is not impossible to find cheap nearshore outsourcing options. However, offshore outsourcing offers the cheapest outsourcing services.
Frequent Check-In’s
A general disadvantage of all outsourcing models is that you will have to regularly check in with the company where you have outsourced your project. Furthermore, because it’s not an in-house team and you do not have continuous access to their progress on the project, you will need to contact the team often to know how the work is going.
Fewer Companies
Depending on where your business is located, you may find it difficult to find competent companies or developers nearshore for you to employ. This is the result of a handful of countries with booming IT industries already offering an array of popular offshore services. You will likely find software development companies nearshore, but you cannot always be assured that they are trustworthy if they aren’t located in countries known for their IT industries.
Utilize The Benefits Of Nearshore Software Development Services
Nearshore development is an outsourcing option that provides many advantages to businesses that employ it. Nearshore development services may be exactly what your company needs, but you should evaluate your projects and needs before deciding on what outsourcing model to employ.
With nearshore development, you can easily communicate with your outsourced team and have fewer time zone complications. But nearshore development also requires frequent check-ins and higher costs than offshore outsourcing. At Orases, we keep you constantly updated on your project as we work through it.
With Orases, you can get access to top-notch software development services. Contact Orases today to get a quote or to learn more about what their expert developers can do for you and your organization.
