Nearshore Software Development Company

Nearshore Software Development Company: What Do You Need to Know?

 Nearshore Software Development Company

It’s official; internal teams are becoming less and less important for businesses. Outsourced developers are common in modern firms. Freelancers, as well as other companies, are often entrusted with projects. They benefit from outsourcing due to its cost savings, time efficiency, and productivity. However, outsourcing can also cause problems, like language barriers and time-zone differences. Here are the Details of the nearshore software development company, along with possible issues to avoid.

Nearshore Software Development: What Do You Need to Know?

A nearshore outsourcing company is one that is geographically close to your country so that you can outsource IT tasks or software development there. Nearshore companies should be between 1 and 3 hours ahead of you when you hire them. So, you will be able to communicate with a contractor easily as there will be no time difference.

Besides, you will be able to visit the contractor in person. It takes two hours to fly from Berlin to Kiev, for instance. Taking a flight to Ukraine, discussing a project with the development team, and returning home takes about a day or two if you're hiring a team from Eastern Europe.

Why Nearshore Software Development Does Work?

Although nearshore outsourcing has obvious advantages, it might not be the best solution for every business. Below, I have outlined several indicators that indicate that you should consider nearshore outsourcing.

Financial constraints

Nearshore software outsourcing can save you money if you're on a budget, as local companies may not be affordable for your region.

 

In contrast, if your budget for hiring engineers isn't limited, you may want to consider increasing the number of employees on your in-house team. Other than that, nearshore software development companies are the best option.

What are your future plans?

Perhaps you should hire your own developers. Taking the teamwork, you learned in your first project and applying it to subsequent projects can be very helpful. The issue is that you don't need to stay in an office with your entire team for every project. Nearshore development teams can build and maintain applications as long as they are needed. Rent and salaries for the office are not needed.

Location

The best outsourcing approach for your position is nearshore development. Consider the number of qualified specialists in the country when choosing an outsourcing company.

If you're a Norwegian entrepreneur who hopes to outsource, you'd be better off hiring the services of a Ukrainian nearshore team rather than someone from India or the Philippines. Ukrainians are only one hour ahead of Norwegians, the Indians five hours, and the Filipinos seven hours.

Developers are in short supply

Whenever you work on a huge and rapidly expanding project, you will likely need more developers. You can outsource the work to the nearshore. By outsourcing a part of the project, you can relieve your main team of some workload. A number of successful companies have outsourced portions of their work.

Advantages of Nearshore Software Outsourcing

In summary, nearshore software outsourcing is an attractive alternative that can provide great benefits to a number of companies. The time has come to explain the benefits of nearshore outsourcing software.

Cost-Effectiveness

Businesses outsource to cut costs, and that's not a secret. What's more, there are no wages, software licenses, and office rental fees to worry about. Outsourcing to developing countries can result in lower prices than when outsourcing to developed countries since these are developing countries.

Closer Collaboration

The short distance between you and the nearshore software company is another advantage of working together. Increasingly, you can work on most problems via the phone because technology is reducing the distance between people around the world. However, sometimes it isn't possible to avoid the need to travel to your partner, so you need to book a plane ticket. Eastern European business associates are also within easy reach of Western European entrepreneurs with overnight flights.

For those who frequently arrange meetings or online conferences, nearshore companies are an excellent option.

Similar Regulations

A number of regulations must be followed during the development of an application. You must comply with the GDPR (General Data Protection Regulation) if you serve the European market. Residents of California are subject to another set of rules called the Consumer Privacy Act (CCPA).

Hire skilled professionals in just a few minutes

Obviously, this is true of all outsourcing types, but nonetheless. It is not necessary to waste weeks looking for qualified candidates among all the CVs. A human resources department is necessary for this. A nearshore provider means it already has a team of nearshore software developers that have worked together on multiple projects. Communicating between members of the team and gaining working experience are two benefits of this project.

When your business scales, nearshore software companies will assign more talents as you need more programmers.

The disadvantages of nearshore software service providers

Nearshore software development has many advantages, but it has some disadvantages as well. After all, nothing is perfect, right?

It's cheaper to outsource offshore, right?

While there are some negative aspects to offshore, the rates are still low. If you live in the right location, there may still be affordable options that are on par with an average price, but this will be more of an exception to a rule. Hence, if you cannot find cheap software development companies in your region, you should consider hiring an offshore company.

Monitoring Periodically

Outsourcing is prone to this flaw. You have to contact a contractor periodically since you hired a remote team of developers. Luckily, meeting people in nearby countries isn't difficult. Flights, however, are time-consuming and exhausting if certain issues require your physical presence.

Outsourced software examples that we like best

We all outsource some part of our work. In order to reduce costs and properly distribute the workload on in-house developers, most of the world's leading companies use outsourcing.

Skype

The founders of Skype started out using nearshore IT to develop their backend and website in the days when Skype was just getting started. A group of Estonian developers designed the features we love the most, such as video conferences, messages, and file transfer. The result was that Skype became the most used video conferencing tool worldwide.

Slack

Provides an example of nearshore outsourcing as well. Despite its functionality, this software lacked an attractive design. Therefore, a Canadian design firm was hired to create the logo, the website, and mobile apps. Today, Slack is thought of as an app that is different in terms of its sound, feel, and appearance. This delightful design combined with useful features resulted in 401 million dollars in global revenue.

Opera

Originally, Opera was an internal project at the Norwegian telecommunications company Telenor. In 1994, the project was spun off and became its own company and possessed its own rights. Telenor's main office did not focus its efforts on this project, which is interesting. Developers from 24 different countries worked on Opera in C++. Telenor relied on outsourcing to cut losses if it failed. Contrary to expectations, Opera ended up becoming one of the top-rated web browsers in the world.

Wrapping up

There is no doubt that nearshore software services impacted the IT industry greatly. They offer significant advantages that cannot be ignored. To find a provider that will meet your needs, you must find one that is reliable.