What is nearshore software development?
Nearshore software development refers to the process of outsourcing software development projects to companies or teams located in nearby countries. This approach offers a cost-effective alternative to in-house development and allows businesses to access highly skilled professionals at an affordable price.
Moreover, the proximity of the vendor and client results in minimal time differences, enabling seamless communication.
What are nearshore development companies?
Nearshore development companies are organizations that offer software development services to clients in nearby countries and locations. These companies have a proven track record of delivering high-quality software products to their clients and are often well-established in the industry.
Why do businesses nearshore?
Businesses opt for nearshore outsourcing for several reasons, the main one being cost-effectiveness. Nearshore developers offer access to a skilled labor pool at a lower cost compared to in-house development or offshore outsourcing.
Additionally, nearshore developers are easy to work with due to a lack of language barriers and can seamlessly integrate into the client's existing hierarchy. There are several other benefits to nearshore outsourcing, as discussed further.
What are the different software outsourcing options available to businesses?
Software outsourcing has many obvious advantages, such as cost-savings, overhead reduction, and unlimited access to a skilled team. However, depending on your business requirements, there are three outsourcing options to choose from. Let's have a look at the options.
- Offshore Outsourcing: This approach involves outsourcing your software requirements to a company or contractor in another country. In this process, there is a substantial distance and time-zone difference between the client and the vendor.
- Nearshore Outsourcing: This approach involves hiring a company or contractor located in a nearby country. In this process, the distance and the time-zone difference between the vendor and the client are minimal.
- Onshore Outsourcing: This approach involves hiring a company or contractor within the same country.
Why should businesses choose nearshore software development?
There are several advantages of nearshore outsourcing over other outsourcing approaches, such as:
Time and culture similarities
Nearshore outsourcing partners are often located near the client, meaning that the time difference between them is negligible. This allows for better collaboration between the development team and the client since there is a full workday overlap.
Additionally, nearshore development vendors share a similar culture, values, and work protocols as the client, enabling seamless integration into the client's hierarchy. Furthermore, since they are highly proficient in English, there is no language barrier between the vendor and client; thus, allowing for efficient communication and understanding of each other's perspective.
Reduced Costs
Nearshore outsourcing partners typically charge much less than onshore vendors or in-house development teams. In addition, they often cover expenses associated with project onboarding such as software licenses, workstations, electricity, office equipment and more. As a result, clients enjoy considerable savings in their development cost when working with nearshore providers.
Furthermore, the client doesn't have to worry about project scaling. They can scale their team up or down without worrying about candidate selection, knowledge transfer, and payroll.
Access to a wider pool of talent
Nearshore development allows you access to a bigger talent pool. This increases the flexibility of your development team and provides you with access to niche Engineers to fill the skill gaps in your company.
What's more, nearshore developers are trained experts who are adept at handling project requirements. This reduces the risk associated with software development and ensures the project has no technical debt.
Business continuity and maintenance
Many nearshore vendors offer robust SLA contracts featuring on-site maintenance 99% availability disaster recovery (DR) ,and backup facilities. This allows for business continuity during natural disasters or system failures ensuring that client operations remain uninterrupted.
Data security
With software outsourcing there is always a concern about data & IP security Sometimes stakeholders feel uncomfortable sharing sensitive data with their outsourcing vendors since it’s difficult to manage access & implement security standards with outsourcing vendors. Near shore out sourcing grants clients greater control over their data & IP access Near shore Vendors typically abide by stringent data sharing guidelines & use Non Discloser Agreements (NDAs)to guarantee protection of sensitive information & IPs.
Transparency And Project Control
Near Shore out sourcing grants businesses ability to access experienced personnel who possess expertise necessary to tackle complex business requirements.This allows businesses to produce high quality products maximising profitability. Moreover, near shore vendors have hierarchical structure with project managers delivery leaders consultants providing visibility& transparency in operations.This enables businesses to keep close tabs on developments processes and initiate modifications as per individual needs if required schedule physical meetings vendor since they’re located nearby.
Nearshore Development with JalaSoft
Software outsourcing allows businesses to create quality products while significantly reducing the risk associated with developing new software at a scale. If used correctly, software outsourcing can be highly beneficial for businesses looking to streamline their operations and reduce development costs.
However, you must conduct extensive research before choosing a nearshore outsourcing vendor. You should always vet your vendors and make sure that they have the necessary resources and infrastructure to support your project. We should also have relevant industry experience and expertise to handle your project.
JalaSoft is a LATAM-based software outsourcing company whose goal is to create innovative, cutting-edge software solutions suited to the individual needs of our clients. Over 20 years, we have provided value to hundreds of clients and are a pioneer in the world of nearshore development.
We work closely with clients to build functional applications through an agile-first methodology. Due to our unique vision and high client success, we are featured on Clutch as a 5-star service provider. If you're looking for a strategic nearshore partner, click here.
