Benefits of Nearshore Software Development

Companies that want to bring new software tools to market often turn to outsourcing to reduce overhead, achieve flexibility, and reduce the capital investments that come with infrastructure and developer talent.

Nearshore outsourcing is an attractive option for companies that are considering either onshore or offshore development work. It’s a “middle ground” for cost, speed, and flexibility, that can provide companies with quality work that does not require too much management from internal IT. Compared to onshore development work, nearshoring is less expensive and does not have the same talent shortage issues. Firms attempting to hire Silicon Valley developers for a project will find the demand and short supply of this talent means astronomically high prices.

Here are some of the core benefits of nearshore outsourcing when compared to other models.

Communication Channels are Easier

Software development that matches needs and is completed on time requires transparent two-way communication. Any barriers to this communication, such as language issues or time zones, can contribute to costly delays and potentially introduce errors. Many offshore firms will offer an onshore contact person, but they often function as an “extra step” and go-between that can further complicate any problems.

With nearshore outsourcing, the development team is more accessible and there’s much less of a chance of encountering language barriers. The modern business relies on agility in terms of quickly adapting to new market conditions and tech. If a company needs to wait half a day to contact their offshore developers and then requires extensive back-and-forth communication to clarify key points, then they are not operating as an agile business. Nearshore outsourcing provides a more straightforward approach that optimizes time-to-market speeds while improving accuracy. The geographic proximity of nearshoring means in-person meetings are easier and cheaper. There are still considerable gains in personal meetings, where the internal team and the outsourced developers can resolve issues and share context or nuance that is difficult via email communications.

Lower Turnover Rates

Traditional outsourcing models often create situations where developers leave firms early and often due to the demands of the work or better opportunities at other outsourcing firms. Turnover rates at nearshore firms are much lower, which provides clients the opportunity to work with individual developers and managers for a longer period of time. This allows developers to build their knowledge about a client’s systems and goals, allowing them to work more efficiently and present a more customer-focused end result.

Cheapest Isn’t Always Better

Offshore firms are often pull in clients by touting their low cost. They can access cheaper labor and lower costs of living, and then pass these savings onto clients. But remember low cost does not always equate to high value. Searching for “bottom dollar” is often a case of false economy, similar to buying a cheap power drill for heavy-duty and frequent work, it just won’t last.

And choosing the cheapest option might backfire if the project does not meet expectations and you need to start over with a new development shop. Nearshore development may cost more on average in terms of real dollars, but the increased chance for smooth and timely delivery make it worth it. Make sure you do a comparison that includes “soft costs” such as slower development times and any debugging that has to occur with cheaper offshore developers.

Nearshore outsourcing provides multiple benefits that blend together the positives of onshore and offshore. It provides enhanced communications, lowered costs, and speed of delivery, all of which can produce quality applications and web services without tying up internal IT.