Dispelling Myths Regarding Nearshore IT Outsourcing
If the image of drug cartels, violence, and a shady looking town comes to your mind when talking about Latin American countries, it won’t take much to convince you that nearshore outsourcing is a bad idea. Unfortunately, pop culture films have done little to get rid of these misconceptions, resulting in wasted software development opportunities.
Countries such as Costa Rica and Guatemala are international hubs for IT talent. The low living expenses coupled with currency exchange rate advantages make nearshore IT projects ideal for US-based businesses. In this blog, we dispel some common myths regarding nearshore IT outsourcing.
Nearshore Outsourcing is more expensive than Offshore
On the contrary, the hourly wage rates for nearshore and offshore are quite similar. Factors such as collaboration, travel, communication, infrastructure, and on-site management make the cost of nearshoring operations significantly lower.
While costs are an important consideration, the biggest advantage of nearshore IT outsourcing is tapping into the vast pool of talent within Central American nations that is responsible for driving growth and innovation for major IT companies.
Vast Time Zone Differences provide an “Around the clock” Work Advantage
This may be true for projects that have long timelines; however, most cases relying on Agile methodology depend on real-time interaction to meet ever-shrinking customer deadlines. Modern tools of communication are not an alternative for real-time interaction and only lead to decreased quality solutions.
Nearshore Outsourcing results in Quality Compromises
Again, this myth exists because people believe Central American nations have poorly developed infrastructures. IT giants such as Intel and others have begun operations in countries such as Costa Rica as early as 2008. The modern outsourcing industry in these countries has now evolved to provide top-notch quality. According to The Global Peace Index, Costa Rica ranks as one of the safest countries in all Latin America.
Nearshore Workers have Poor English and Communication Skills
You’d be surprised at the proficiency and command of the English language nearshore agents possess. Countries such as Costa Rica have made education compulsory for its citizens and learning English is given top priority in schools and universities.
The country’s literacy rate is at 97.4% with numerous institutes offering training courses that enhance computer skills and drive innovation in both manufacturing and services industries.
Lack of Cultural Affinity
Although English is not the main language for most Latin American nations, countries such as Costa Rica are good examples of a highly westernized culture. It aligns itself with the US culture via its commitment to technology and science as well as incorporating mainstream business practices.
Businesses seeking quality and affordable IT solutions should look past the common misconceptions regarding nearshore IT outsourcing. Doing so will open the gateway to large pools of talented workforce.