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Nearshore IT is a surefire way to boost your next software project. Not only will you get access to top talent, but you’ll also enjoy cost savings, cultural alignment and seamless collaboration across borders.
It’s no wonder that 80% of U.S. companies are considering hiring nearshore software teams.
Let’s take a deep dive into nearshore outsourcing, such as advantages, feature comparisons, best practices and more. Our experts will guide you through everything you need to know to excel with nearshore software development and achieve your business objectives.
Content Overview
What Is Nearshore IT?
Nearshore IT involves hiring technology professionals located in the same or neighboring time zones. By sharing overlapping workday hours, nearshore teams can establish real-time collaboration and more efficient development processes.
The nearshore outsourcing method is in direct comparison to offshore and onshore IT:
Offshore IT
This method means you hire developers globally without considering geographic proximity. Although rates may be cheaper in certain regions, you may face challenges that stem from a lack of shared time zones. Conflicts may arise from differences in work cultures, communication expectations, quality standards, etc.
Onshore IT
Onshoring involves hiring developers within your country of business. Collaboration tends to be well-aligned in this case, but it’s more costly. You may also have to contend with limited talent pools and extreme competition.
In essence, nearshore software development overcomes the shortcomings of these opposing outsourcing models. It strikes a balance by connecting you to top talent at affordable rates and with easier logistics for ongoing collaboration.
Benefits of Nearshore IT for Software Development
Nearshore software development has proven benefits for businesses everywhere – from operational efficiencies to higher product quality. Here are the main reasons for choosing this method.
Proximity and Time Zone Alignment
The agile methodology requires constant collaboration for feedback and iterations. Overlapping time zones make development processes more seamless and efficient. Geographical proximity also goes hand-in-hand with cultural proximity, so your teams will be more likely to share workplace expectations.
Access to Top Talent
The U.S. is currently suffering a developer shortage of nearly 1 million professionals. Looking beyond borders is useful for accessing top talent and specializations that are otherwise unavailable onshore. For example, Latin America has a wealth of skilled developers ready to collaborate with U.S. companies and boost project outcomes.
Cost Efficiency
Nearshore software developer rates can unlock impressive cost savings. Overall, you can hire superb talent in LatAm at 40-50% lower rates compared to the U.S. Well-integrated nearshore teams can also reduce costs by attaining new efficiencies and faster time-to-market.
Cultural Compatibility
Finally, culture is a major factor in aligning team communication and workflows. Nearshore software teams tend to have cultural know-how of the U.S. workplace, enabling stronger connections and shared expectations on your team.
Nearshore IT vs. Offshore IT: Which is Better?
Nearshore IT can be advantageous for your business, but how does it stack up to offshore and onshore outsourcing?
Overall, nearshore software development minimizes the risks of outsourcing. Trusting a team across the world in opposite time zones can lead to stilted collaboration. The cultural and language barriers are also more likely to be higher.
In contrast, nearshoring allows you to build close-knit teams with overlapping hours. In turn, the product quality tends to be much higher, as well as key values such as efficiency and innovation. Plus, unlike onshore options, you’ll have a greater talent selection and more affordable rates.
How to Choose the Right Nearshore IT Partner
Your product success depends greatly on your nearshore software development company. Be diligent during the partner selection process. In addition to considering your ideal software outsourcing location, weigh factors such as:
- Technical specializations
- Cultural fit
- Previous product builds
- Industry expertise
- Communication style
- Teaming logistics (including time zone, language, culture, etc.)
- Security protocols
- Proposed SLA
Overall, undertaking a comprehensive analysis of providers upfront will allow you to make informed decisions and build more effective teams.
Questions to Ask Potential Nearshore IT Partners
During the selection process, you should glean as much information as possible about your potential partner. To this end, try asking:
- What does your development process look like?
- How do you handle changes during the project?
- What KPIs do you track to measure success?
- How do you set up strong communication?
- What are your company’s core values?
- How do you guarantee security, data and IP protection?
- Does AI handle any of your development tasks?
Best Practices for Managing Nearshore IT Projects
Hiring nearshore software development teams is just the beginning. To get results with nearshore outsourcing, pay special attention to these best practices for managing and integrating developers:
- Create robust onboarding, including both technical training and people-focused meetings. Hand over detailed documentation so that your developers have clear vision into workflows and policies.
- Schedule daily stand-ups to align your teams every day and unlock top development efficiencies.
- Motivate developers with milestones. Set up weekly sprints that help organize your developers and spur them to do their best work.
- Use the best collaboration tools that bring together your virtual team. Slack is a go-to choice, but there are more such as Miro, Loom, Wooboard, etc.
- Nurture cross-border team culture based on transparency, respect and comradery. Start by fostering collaborative meetings, an internal “buddy” system and after-hours virtual events.
- Make adjustments over time to keep improving your team processes. Undertake pulse surveys to know what your developers need. Don’t be afraid to try new things and demonstrate continuous learning in action.
Make the Most of Nearshore IT With TECLA
Choosing nearshore IT can lead to first-rate outcomes for your business, including access to elite talent, cost savings and higher product quality. Leverage our tips above to achieve savvy nearshore teams that get results.
Even so, success often hinges on hiring the right nearshore software development company. At TECLA, we’re proud to be a top-ranked talent partner you can trust. Our robust talent pool of nearshore developers in 18+ LatAm countries means you can build a specialized team in no time. Reach out to discuss your needs with our nearshore hiring specialists!
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