Software outsourcing every day becomes one of the most used options by companies seeking to cover the lack of technical skills of their businesses. When contracting a service with these characteristics, it is important to evaluate which of its modalities best suits our needs. Outsourcing is, for any company, a strategic decision that involves the incorporation of an external provider into its value chain. Delegation of competencies enables organizations to improve their performance by focusing their efforts on the activities of their core business. In the specific case of software and application development, it means leaving the conceptualization, design, implementation and maintenance of specific technological solutions in the hands of others.
Nearshoring is probably the most popular software outsourcing option today. The main reason: it combines the best of offshore and onshore.
Also known in English as in-between choice, it represents the association with a foreign company located in a nearby country (same time zone or similar). In this case, in-person communication, cultural understanding and relationship building are enhanced. Traveling to visit the team is cheaper and faster, making a healthy collaboration easier to achieve.
Searching for a nearshore team broadens the horizon of possibilities, making it easier to find well-qualified teams. In addition, it represents a reduction in costs compared to a national supplier.
Advantages
- Access to highly experienced developers who possess the same demand skills and workflow efficiency as onshore resources, at a better value.
- Geographic proximity significantly reduces or eliminates time zone and travel problems. Time zone alignment also enables agile collaborative real-time development.
- Certain Latin American countries foster technological communities similar to those found in Silicon Valley. They also have higher rates of fluency in English and cultural affinity.
Disadvantages
- While hiring engineers near the shoreline is often less expensive than on-site or on-shore labor, it can still cost more than working with offshore equipment.
- You will find some time zone differences (a few hours) when selecting the nearshore model. If every hour counts, especially when you have a tight delivery schedule, these differences can lead to marginal productivity losses.
However, nearshore software development is not the only type of outsourcing. Although it is true that there is no more or less suitable option, it is important to take into account the advantages and disadvantages of each of them. For this reason, we define them to help you make the decision that best suits the needs of your project.
What do onshore and offshore mean?
In general terms, the main difference between onshore, offshore and nearshore is the distance that separates the contracting company and the contracted one.
– Onshore: it would mean hiring a national software development company.
– Offshore: it would involve partnering with an Asian or American company.
