Simply put, nearshoring can be translated into the practice of moving your business to a neighbouring country or attributing certain tasks to companies located in countries nearby, that have a common time zone and similar cultures, which allows them to have an easier communication and collaboration among team members.

Outsourcing plays a very big part in the IT industry as new technologies emerge. Not all in-house teams can take care of the projects on their own. And at these times, outsourcing to nearby counties allows businesses to build a more dedicated and complete team to achieve their goals. The workforce can collaborate easily due to the proximity of the nearshore partner.

The global market size of outsourced processes has reached over $92.5 billion and it includes all types of outsourcing, but nearshore software development has grown in recent years and becomes more popular among businesses.

Advantages of a nearshore partner

Besides being sometimes in the same time zone, a nearshore partner should be located 1-2 hours away at most. Outsourcing the development process to a further away country will force you to take long and expensive flights if you need to meet your foreign client face to face. Most neighbouring countries have a lot in common such as the way they think and their work model, which helps diminish the language and cultural barriers. If they don’t speak the same language or one that is similar, then there is always English.

In addition to the cultural proximity, the major advantage of nearshore solutions is their cost-effectiveness, due to the competitiveness of the provider’s country. The companies usually delegate software development to countries with lower service prices – you get a significant reduction in costs and time spent.

There is a constant accompaniment and exchange of ideas. The client will be working with experienced and skilled professionals who pay attention to the creation of the software/project with absolute detail. This way, the client can concentrate solely on what matters for their business and rest assured knowing that the teams are doing their best to provide the best results. Furthermore, when investing in a nearshore team, the client does not have to address topics such as office rent, resources, wages, benefits, insurance, and hours/investment in training.  He doesn’t have to deal with labour and legal concerns.

Qualities to consider when choosing a nearshore partner

When selecting the nearshore services partner, it’s essential to look for those that have significant experience in the market. Partners with specialized knowledge will understand better the needs of the client and deliver a higher quality product.

Another crucial factor is the nearshore partner’s policy for IP protection. This is extremely important when outsourcing project management to another country. The correct policy to protect the company’s IP is important to enhance innovation and increase market value.

The nearshoring teams will also need to have efficient communication systems. A partner that provides the ability to use several collaboration tools to communicate the details of the project is essential. Clear communication is how the company understands where the problems lie and how the partners deliver a high-quality product on time.  If the partner is also willing to use remote team communication tools, he will also save the company from the hassle to travel to the nearshore site to address any concerns – it just makes it simpler to streamline the workflow process.

Above all, when selecting a partner, a company should remember that nothing can interfere with the quality of the deliverables. Just because the client shares the culture or time zone, that doesn’t mean they should settle for lower quality. It’s essential to make sure the partners have the same work ethics as the client and that they utilize their work hours efficiently.

When developing a unique product, it is as essential to have quality as much as it is to be productive.