Nearshoring is a term that refers to locations of teams near the company headquarters. These can be anywhere near the same time zone or in a nearby country. A company in the Germany outsourcing to one in Poland is one such example of nearshoring.
Advantages of Nearshore Software Development
Here are 8 reasons why nearshoring is a great idea:
1.) Shared legislation
Hiring an outsourcing team from within the same union is a good idea because it means that you are both following the same legislation. This also increases transparency so you can keep better track of your work. Plus, it can help reduce the risk of incurring any legal or ethical issues.
International law is a tricky subject to cover, however it’s very important you don’t take chances. Without a detailed agreement in place, it may be harder to pursue solution modifications and the solutions themselves might be unclear. This is true: staying within the same legal borders will help protect you, and your business partner.
2.) Economic benefit
If you operate in Western Europe, it has a lot of advantages that the nearshoring partner you pick is in Europe. This will ensure that the first direct positive effect on your company will be economical. The same goes for the United States with choosing a partner within North American borders.
Since money gets injected into the same buying or selling areas, it will remain in that region’s circulation. This creates a win-win situation because it directly benefits all parties based in that area and continues to provide long lasting benefits. Paying taxes and helping create jobs in your area helps to generate more revenues for the local economy. This ensures that they thrive.
Choosing to hire locally means you can get the best value for your money.
3.) Common values and culture
Would you be pleased if your development team decided to take a 10 hr break during your working hours? You may be right in that case, but you should also consider the different work ethic and culture. What’s their track record for getting things done on time?
Lots of nearby countries maintain strong ties with your country. One of the benefits of trade & tourism is that there is more familiarity with each other’s languages & culture, which could help cut down on any kind of language or cultural barrier.
4.) More influence and control
Common language, similar knowledge, and a matching time zone mean you have a level of control in your project on par with that provided to those who are working. The developers you work with are local, available during your scheduled hours, and fluent in your preferred mode of communication.
5.) Reduced travel costs
It is impossible for remote teams to work without face-to-face contact with the hiring company. Workers are unable to develop strong connections that allow them to collaborate productively. Regular meetings and visits will work in your favour for your project. Send staff to the other side of the world? Transporting them can be time-consuming and expensive. Aside from the cost of travel expenses, you still need to deal with reduced work performance that comes from your employees being too tired.
Nearshore software development saves you the hassle of flying halfway across the world. Most European and U.S. airports have direct flights to really good nearshore locations, so you can get from point A to point B within hours instead of days. Just spend 2-3 hours on a plane if you need to conduct face-to-face meetings.
6.) Same/similar time zone
Outsourcing to the other side of the world means shifting all related business processes to late evenings or early mornings.
This means having at least several hours time difference between meetings with members of the team. It’s can also mean a productivity loss for the project. If any issue arises offshore and a team member has to wait for a while to get back to business, it is especially frustrating and results in a delay.
7.) Balance between cost and quality
One of the main reasons that companies prefer offshore software development is because it is a cost-effective way to outsource work. When choosing between these two outsourcing options, it can be difficult. The cost of the nearshoring is higher but you’ll might also get a better result. You must not forget the lower wages on offshore destinations, which can be a good reason for lower reates as well. Ofcourse this highly depends on the development partner and team you finally choose. It’s not a given fact that nearshoring is always a better choice than offshoring.
It’s more important you don’t try to save on software development. Either if it is nearshore or offshore. If you lose on quality and need to spend extra time on fixing that might not be the right way to go.
8.) Having closer relationships
Ultimately, your success in outsourcing development work depends on the quality of the connections you have. One of the best ways to build a strong relationship is through trust and commitment. This can be done if both parties are willing to work together. That’s why these are the people you should prioritise your connections with and invest more into them in terms of time & energy. Businesses who need these types of services tend to have the values of cultural sameness, proximity, and cost in mind. Thanks to nearshoring, they don’t have to sacrifice any quality while also stretching their budgets a little more.
At SHORE teams, we aim to help you find the absolute best nearshore developers through our network of 100+ partners.
With our nearshore pool of 10,000+ technical talents, we’ll provide you with the best nearshore software developers for your situation and based on your requirements.
SHORE teams has been ranked as a Top 30 Nearshore Software Development Company in 2021 by DesignRush.