3 Ways Nearshore Software Development Services are Superior to Offshore Ones

In order to remain competitive, IT businesses are always looking for new ways to reduce costs. Outsourcing software development projects allow these businesses to take advantage of lower wages and emerging talent in developing countries.

However, as more and more businesses leverage these benefits, the increase in demand doubled with economic growth in countries such as India and China and therefore caused the wage gap to significantly decrease.

These problems and others forced IT businesses to move towards a better — and closer to home — solution in the form of Nearshoring. In this article, we take a look at 3 ways nearshore software development services are superior to offshore ones.

The Risks Associated with Offshore Software Development

The major obstacle a lot of companies face with offshore outsourcing is a lack of proper communication. By handing your projects over to a team on the other side of the globe, it’s highly likely that they won’t speak your language fluently, will misunderstand directives, and have trouble articulating necessary details.

Another concern is the difference in time-zones. Businesses may believe that by offshoring a project, they’re technically working around the clock. But this creates a number of problems, including difficulty in synchronizing work schedules, troubleshooting delays, and meeting client deadlines.

Even with effective communication procedures, conveying project requirements and domain knowledge via video conferencing cuts away at the local teams’ time, resulting in considerable delays.

The Benefits of Nearshore Software Development

The following are some of the benefits nearshore outsourcing has over offshore software development.

Close Proximity

Nearshoring development projects to closer proximity locations such as Costa Rica, Guatemala, and Peru allows both teams to communicate in real-time. Video conference meetings can be made without either team having to face any inconvenience, resulting in desired outcomes and higher quality work. Errors can be corrected immediately without having to wait for long periods of time. Additionally, fewer mistakes will be made due to cultural similarities and increased collaboration.

Cost Savings

As mentioned earlier, rising labor costs in countries such as Russia, India, and China have meant that the wage gap between local and international labor has decreased significantly. Nearshoring to Latin American countries is advantageous because of lower costs of living and exchange rates.

Skilled Labor

Latin American countries are slowly emerging as a hub of IT talent. Places like Costa Rica are home to some of the best engineers and developers in Central America. The talented workforce has had an immensely positive impact on the country’s economy and makes it an ideal place to outsource software development projects.

Nearshore Costa Rica

Building your own Nearshore IT team is a costly undertaking that involves legal and logistic complexities. Outcoding is a nearshore software development company based in Costa Rica that provides a range of software development and IT-related solutions. Contact them today for more information.

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