Nearshore Custom Software Development: The Definitive Guide

There are many reasons why a US-based business might choose to outsource certain tasks and projects. It could be because a certain skill set is lacking in-house but is only needed for a specific project or period, so a permanent hire is not viable. Even with ongoing IT requirements, it can still be cost-effective and advantageous to outsource to a specialist firm elsewhere rather than hire an in-house specialist.

Aside from the reduced costs, let’s look at the reasons why outsourcing is often a much better option than hiring a permanent in-house specialist.

Wider Access to Talent Pool

One individual might be proficient in one or two areas, but IT specialization covers a wide range of skills and knowledge. By outsourcing to a specialist firm, they will have access to far more skills and knowledge than any one individual.

Access to Resources

An IT specialist company will also have access to a larger variety of technical resources which an individual hire will not have at your company unless you provide them. It is an expensive outlay to gather all the technical resources you may need for all the different IT projects, and many of them will not get a lot of usage after their initial purpose.

A tech outsourcing firm will have these resources in abundance to call upon whenever you need them. This is especially useful for small to medium-sized businesses and start-ups.

Scalability

The wider talent pool and access to resources enable outsourcing firms to scale up their involvement with your company as your business grows. They will also be able to downsize if necessary, which removes the unfortunate necessity to cut staff numbers during periods of economic volatility.

The instant multi-directional scalability that an outsourcing firm offers you is a massive advantage in the ever-changing business landscape.

Nearshore Custom Software Development or Offshore Outsourcing?

Apart from onshore outsourcing, which is often prohibitively expensive, there are two options for outsourcing: nearshore and offshore.

A nearshore custom software development company is one that is closer in geographical location and thus shares a similar time zone. For US-based companies, examples of nearshore locations include Latin American countries, especially those in and around Central American such as Costa Rica.

An offshore outsourcing company will be much further away and operating in very different time zones. So, for a company based in the United States, an example of an offshore outsourcing company would be one based in Asia.

The cheapest option will usually be offshoring, but this comes at an altogether different price. The lack of communication due to the time zones and language barriers can cause all kinds of problems. There are also the cultural differences in work style and approach to business that also present major challenges.

Nearshoring can be a little more expensive than offshoring, though still less expensive than hiring an onshore company. Hiring a nearshore firm also has the benefits of easy communication thanks to the similar time zones and prevalence of English language proficiency in well developed Latin American countries.

There are many cultural similarities too, especially when it comes to business and style of working, so collaboration and fluid teamwork is much more easily achievable.

To find out more about our nearshore custom software development services or discuss your requirements, please contact our team on +1 800 974 7219 ext. 202 or by completing the form here.

Contact us for further information!

Contact us for further information!