5 Key Advantages of Nearshore Outsourcing for Long Term Success

If software development is crucial to your long-term operations, you may be tossing around ideas on how to go about it: In-house? Onshore? Offshore? Or nearshore outsourcing?

We want to make our case for choosing a nearshore company.

In terms of software development, nearshoring offers companies the most flexibility and highest engagement at the best cost.

So, what is it? And how will it help your business long-term? Let's get into that now.

What Is Nearshore Software Development?

Offshore outsourcing typically refers to recruiting a development team from far away, while onshore outsourcing is partnering with local talent.

Nearshore outsourcing straddles the line between the two. It's a term more prevalent in the tech industry, where companies partner with developers in nearby countries. The model of outsourcing helps reduce overheads but still offers an accessible development team.

Compared to the other two, nearshoring is less complicated and much more beneficial. Why, you may ask? We'll tell you.

Below, we delve fully into the top five advantages of nearshoring.

1. Best Price-to-Value Ratio

One of the significant benefits of nearshore sourcing is how incredibly cost-effective it is.

Offshore developers tend to offer lower rates, but nearshoring offers a higher ROI. For one, nearshore teams don't experience the burnout of working unnatural hours, reducing overall turnover rates and costly mistakes.

Additionally, the outsourced teams in nearshore countries, such as Latin America, typically receive higher pay, which is key to higher productivity levels.

2. Opportunities for In-Person Collaboration

A considerable contribution to the popularity of nearshore outsourcing is company proximity.

With offshore developers, you'll experience lag time due to 12+ hour time differences, and conducting face-to-face meetings is hardly an option. Sometimes, those moments of in-person collaboration can make all the difference for a business.

Nearshore outsourcing means having a solid team of third-party developers there when you need them. On the other end, U.S. project managers can meet their nearshore software development team without losing workdays to 20+ hours flights. The proximity reduces flight times and flight costs.

Plus, as you research prospective outsourced teams, you have the easy option to meet them before choosing to partner with them. You won't have to question whether a company's sales team is telling you what you want to hear. When visiting in person, you can get a genuine feel for their workplace environment and the team that'll potentially back your business operations.

The opportunity for in-person engagement can benefit you right from the very beginning.

3. Easy Integration with Your Team

When collaborating with external teams, it's essential to understand one another. Language barriers and differing cultural norms may lead to miscommunication obstacles that outweigh any other benefit of offshore outsourcing.

When you're working with outsourced teams in nearby countries, this is a lot easier. Most likely, a nearshore company in Latin America is already fully prepared to work with US clients.

A key advantage of nearshoring is merging with a group that shares those language and cultural similarities. Mexico, for example, has shared a border with the US for centuries. Because of this, the two share cultural norms, especially in the workplace.

Additionally, nearshore software developers have excellent English proficiency, especially as English is a major university degree requirement in South America.

4. Improved Communication Between Teams

With offshore developers on the other side of the world, you lose the chance to meet in person. And since your time zones can be up to 12 hours apart, even remote collaboration is difficult.

Chances are, you won't work simultaneously as the outsourced teams, causing a lapse in communication. In instances of emergency, the time zone difference can be detrimental to company operations. You certainly don't want your business process stalled because of offshore external teams.

Nearshore teams in South America work in the same, or similar, time zones as your own. Talking over new ideas and working through technical difficulties can happen when you need it during regular business hours.

Plus, technology is already driving digital transformations in the workplace, including integrating collaboration and communications platforms. With the suitable systems in place, you won't risk losing sleep or adapting to an odd schedule. You'll also open communication between any internal development people and your outsourced teams, which everyone can appreciate.

5. Larger Talent Pool

Let's face it — the US software engineer pool is highly competitive. The cost of hiring local talent has skyrocketed exorbitantly, and as the demand for engineers grows, you can expect their salaries will too.

Nearshore outsourcing gives you access to teams with the same talent as local players. You'll have the same excellent code quality, engineers familiar with the tools your internal team uses, and developers proficient in any coding language you need.

Can Nearshore Software Development Help You?

Locating and hiring a solid development team only scratches the surface. You'll need to consider their quality, ROI, reliability, and how their business process meshes with your own. These critical factors can be the boon or bane of your software projects.

The unique benefits of nearshore outsourcing blend both the advantages of offshore and onshore teams. It's cost-effective, and you have expert engineers located close to home. Thanks to a shared language and similar cultures, you minimize lapses in communication. Additionally, proximity means reduced lag time as you often work within the same time zone.

If the long-term advantages of nearshoring sound beneficial to your next software project, we'd love to hear from you. Contact us today to learn more about our team and talent.