You can go for offshore, nearshore, or onshore companies when you are looking to outsource software development services. Depending on your needs and budget, you may choose one of the presented options. However, most companies opt for nearshoring because they enjoy a vast talent pool with reduced costs.
What is nearshoring?
When a corporation outsources software engineering work to a nation neighboring its own, this is referred to as nearshore software outsourcing. Nearshore outsourcing often entails transferring work to software teams in Latin America or North America for firms in the United States.
Colombia, Mexico, Brazil, and Argentina are among Latin America’s most popular nearshore locations. All four nations have operating hours suitable for all time zones in the United States. Although cost savings are significant considerations in outsourcing decisions, organizations who select nearshore outsourcing are often driven by the high level of programming talents and the value it contributes to software products. Nearshore outsourcing companies are also more likely to have the language abilities and cultural compatibility required for tight collaboration.
Nearshoring examples
To fully understand why companies opt for nearshoring, you should study a few nearshoring examples. Look at the driving forces behind their decisions and the benefits they got from them.
Nearshoring for startups
Nearshoring is ideal for startup companies looking to expand and fill market gaps. A good instance of this is Dropp, a firm that provides e-commerce businesses with quick, efficient, and ecological last-mile delivery services. The firm aimed to build a technological plan that would optimize scalability and security, use the best software development techniques, and allow their product to reach the market as soon as feasible.
The nearshore team concentrated on developing a technological plan throughout the initial phase. This included assembling a consulting group, procedures, and quality assurance professionals (QA). These experts collaborated extensively with Dropp’s management to understand their present technology and integrate the suggested approach with their company objectives.
This first step revealed various insights that would be crucial in the subsequent stages of execution. The team discovered;
• Suggestions for what to buy and what to construct
• Recommendations for technology stacks
• A thorough road plan for implementing the approach
• A strategy for guaranteeing the resilience of architecture and infrastructure
Then, in the project’s second phase, they formed a specialized nearshore team of engineers focusing on the chosen tech stack to carry out the plan. Dropp reaped multiple nearshoring benefits that would have been unthinkable otherwise. For instance, the team assisted Dropp in defining the technologies that would be employed in their product in the long run. The nearshoring team developed a technical plan and timeframe in cooperation with the in-house team to assist Dropp in achieving a product launch for go-to-market. The team also contributed to developing the software architecture and the overall system. As a bonus, The developers continue to collaborate with the Dropp team to guarantee delivery and continued success.
Nearshoring for transitional and modernization periods
Fexco is an Irish-based worldwide financial and business services firm. Fexco intended to upgrade its IT stack in 2016 by replacing some of its older on-premise software with cloud-based alternatives. However, the organization needed help finding high-skilled employees locally.
The firm sought nearshoring services to swiftly establish a team of 11 full-stack engineers in Spain and Poland. They began by migrating one of Fexco’s on-premise apps to a modern cloud-based solution.
Following that, the nearshore team assisted Fexco’s in-house developers in developing a unified API by defining the delivery lifecycle and quality controls and establishing a new infrastructure and technology stack. The developers then used the central API to rebuild an additional on-premise application. Fexco continues to enjoy the benefits of nearshoring software services to date. They are now using new cloud apps to replace outdated software and have a new, cutting-edge technology stack. At the same time, the nearshore team continues to communicate and transfer knowledge between in-house and nearshore teams which in turn brings a high rate of investment return.
Conclusion
There are tonnes of examples you can draw your nearshoring examples from. If you wait to be persuaded on which outsourcing solution you should employ, nearshoring quickly wins.
