Outsourcing has become a trusted solution for industries far and wide, including finance, customer service and HR. Yet, the highest demand is for IT services, with 54% of companies outsourcing them.
In particular, software development is well-suited to outsourcing, due to its focus on hiring dedicated experts and using sprint-based cycles. What’s more, for U.S. companies keen to access elite talent without the traditional risks of offshoring, nearshoring has become the preferred choice.
Here we’ll analyze why nearshoring software development is a superb solution to meet your technology demands without breaking the bank. We’ll look at nearshore software development benefits, model comparisons, partner selection tips, success stories and more.
What Is Nearshore Software Development Outsourcing?
As the name suggests, nearshore software development outsourcing involves hiring tech professionals “near” your business. Often talent is located in the same or neighboring time zones.
The greatest advantage of nearshore software outsourcing is the ability to collaborate in real time to streamline meetings, feedback and ongoing product iterations. Doing so creates highly efficient workflows that then speed up product development.
Additionally, geographic proximity typically enables more aligned teams through shared cultural and workplace expectations. In contrast, other models don’t offer this same level of compatibility.
- Offshoring entails hiring talent worldwide without regard to geographic proximity. Often you’ll find the cheapest rates this way, though it may come at a price. Partners may not have the same high standards for quality, cultural alignment and communication.
- Onshoring is when you hire professionals within your country of business. Although collaboration tends to be seamless, the U.S. is currently facing a severe developer shortage. For this reason, you’ll likely pay a premium for the best talent and face competition to find available professionals.
Why Choose Nearshore Software Development Outsourcing?
The benefits of nearshore software development run the gamut, from smooth logistics to higher-quality products.
Time Zone Compatibility
Nearshore outsourcing services take place in overlapping time zones with your business. This enables real-time collaboration and more efficient communication practices with your dedicated tech team.
Access to Skilled Talent
Nearshore talent pools in Latin America are known for having top-ranked skills. Here you can explore a variety of specializations and experience levels to find your ideal developer profiles. Access to this elite talent is especially important, given the rampant developer shortage in the U.S.
Cultural Alignment
Nearshore software outsourcing also elevates the cultural integration of your teams. LatAm developers are well-versed in U.S. workplace expectations, such as communication styles, quality standards, etc. They also have top English to establish solid connections.
Cost Efficiency
Nearshoring software outsourcing involves significant cost savings for your tech budget. On average, you’ll spend 40-50% less compared to U.S. pros. Moreover, you’ll still get the same high caliber of technology talent. Choosing dedicated teams also means leveraging efficient, built-in workflows.
Flexibility & Scalability
Your software development journey won’t be a straight line from start to finish. Nearshoring can give you greater flexibility to scale up or down, or access new expertise over the course of a project. In turn, this can boost efficiency and guarantee your project is aligned with your evolving business needs.
Risk Management
Finally, nearshoring removes many of the risks of offshoring. A low-quality outsourcing partner may fail to meet deadlines, protect your data and/or drive results for your goals. Nearshoring allows for airtight risk management, as partners are seasoned in building industry-leading protections.
Key Benefits of Nearshore vs. Offshore Outsourcing for Software Development
With offshoring, it’s possible that you won’t share any workday hours with your developers. This can cause friction, as you can’t collaborate in real time or get swift feedback.
A lack of geographical proximity may also entail cultural distance. For instance, your developers may not have the same high level of workplace alignment and experience misunderstandings that stagnate your project.
Offshoring may also incur more risk, depending on your partner. It’s essential to find an agency with high quality standards, security protocols and established team processes. Otherwise, you may run into common offshoring pitfalls, such as low caliber, delays and rising project costs.
How to Choose the Right Nearshore Software Development Partner
Success with nearshore software development outsourcing is in the hands of your partner. That’s why you should undertake a thorough partner selection process. On the whole, be sure to ask about these main areas.
Understand Talent Pool Expertise
Nearshore partners each have their own unique bank of developer talent. Get to know their specializations, experience levels and typical developer profiles. Evaluate the logistics and availability of talent as well, including their time zones and English proficiency.
Assess the Non-Technical Aspects, Too
Strong partnership isn’t just about technical skills. Know your provider’s non-technical merits, such as alignment with your business goals and workplace culture. Check that they have excellent communication and project management, so that the process of building your product is frictionless.
Look for a Strong Track Record
Evaluate your potential partner’s past projects with special attention to the technologies and industries involved. It’s useful to read reviews and contact past clients to hear from them directly as well. During this process, don’t forget to ask about their internal processes, including project changes, security practices and more.
Real-Life Success Stories of Nearshore Software Development Outsourcing
At TECLA, we strive to lead the talent industry by providing elite, pre-vetted technology professionals. As part of this process, we emphasize building relationships and delivering skilled, long-term talent. Learn about our recent success stories of recruiting talent for top brands.
Ours
"The fact that TECLA put us in front of really high-quality and fitting candidates almost immediately was outstanding."
Ours required a specialized full-time developer to boost their engineering team. TECLA helped source and interview candidates that fit their specific parameters, as well as support the new hire during the engagement period.
Overall, the company was pleased that the engineer “immediately jumped in” and made a strong positive impact on the project. As a result, Ours saw key advantages:
- Sped up the development process and enabled more features
- Saved money compared to internal hiring
- “Nothing but good things to say” about TECLA
A News Streaming App (Anonymous)
“TECLA got the people we needed for the project, and it was a great experience.”
An anonymous new streaming app needed to ramp up its mobile app offerings. They were keen to hire two Android developers and two iOS developers to effectively expand their mobile apps on par with their hallmark TV apps. TECLA provided highly responsive and “flawless” talent integration to fill their gaps. Top outcomes for this company included:
- Ranking in the Google Play and Apple App Stores
- Reducing the gap between their TV and mobile app offerings
- An investment spend of $430,000–$440,000
- Overall “very happy” with developer hires
Best Practices for Working with a Nearshore Software Development Team
Integrating nearshore developers is usually a seamless process. Even so, you can maximize your new talent by implementing best management practices. Doing so will enable your teams to kick your project into high gear from day 1.
- Don’t be afraid of documentation. Keep your developers well-informed of company policies and processes. Have a remote work policy, as well as robust resources to transfer project knowledge.
- Leverage an agile mindset. The agile method streamlines development through daily stand-up meetings and continuous iterative sprints. Avoid micromanagement and instead focus on hands-on independent milestones for your team members.
- Set up collaboration tools. Your nearshore software outsourcing teams should have open communication lines. Give them access to key collaboration tools, such as Slack, Miro, Loom, Trello and more.
- Embrace cultural differences. Encourage integration by modeling an attitude of respect and interest. Foster a welcoming atmosphere through collaborative meetings and peer-to-peer feedback. When in doubt, plan after-hours events to unify your teams.
- Encourage ongoing improvements. You’re never “done” when it comes to managing teams. Be sure you’re regularly getting feedback on processes, tools and more. In this way, you can implement improvements to make your teams as efficient and unified as possible.
Uplift Your Nearshore Software Development Outsourcing Teams Via TECLA
Nearshore software development outsourcing is a winning choice to achieve top scalable digital products. By hiring skilled developers in your time zone, you can smoothly integrate your teams, boost outcomes and reduce your IT budget. For best results, leverage our tips and trends for nearshore tech talent above.
While nearshoring is a smart move for your business, make sure you choose the right partner. TECLA has earned renown as a trusted nearshore software outsourcing company. To bridge your talent gaps, we analyze your needs and match you with first-rate tech professionals. Our rapid yet in-depth recruitment sets the gold standard for the talent industry. Reach out to our nearshore hiring specialists today!
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