By | Daria
A nearshore software development team is located geographically close to the customer (2-4 time zones away) as a type of outsourcing model. Nearshore is the second-best option, following onshoring, which offers the same level of expertise while being more affordable.
It would be great if you outsourced your nearshore software development or offshore provider for the following benefits:
- Access to top talent
No matter how hard you interview, you might not always find an employee with the right skills or background experience in your neighborhood. The benefit of outsourcing in Latin America is that you can work with individuals with experience in your time zone, and today’s technology makes it easy to do so.
- Making time for creativity
Growth can be slowed and success limited by time as a business grows. You got your initiative by putting in the time to develop something special: a twist on an idea,a specific product type, or a flair for design.
To continue growing, your workers must put as much time into innovation as they did when you were founded while still managing the day-to-day operations. With offshore software development, your employees can focus on the big ideas that define you while a low-cost team executes the execution-related tasks.
Nearshore software development firms can handle the operational work to support and maintain a new product, leaving your devs free to work on your next critical innovation.
- Better communication due to no cultural and time differences
Dissimilarities between cultures and languages can cause significant obstacles that are hard to overcome. Communication problems, delays, legal issues, and so on are possible consequences of this situation. It is one of the reasons why a growing number of businesses are looking into nearshoring to reduce the costs of outsourcing.
There can often be very few cultural differences since the nearshore destination is close to where you are geographically located. Nearshoring also benefits the teams working in the same time zone and with the same language. It is, therefore,more accessible for you to collaborate with outsourced specialists as a result.
Communication is also smoothed out, a fundamental part of any business venture. The communication process among you and the subcontracted team is more straightforward with nearshoring than offshoring.
- Recruiting Ease
Bringing on an outside contractor with the right skills for your current project is easy when you have a nearshore partner who knows exactly what you need and the local market. You can sift through resumes and interview potential hires with the help of your nearshore partner, software development teams can be augmented in just a few days instead of weeks by using this method.
- Saving money
When you nearshore, you can reduce costs considerably, allowing you to use that money for more critical tasks. By utilizing remote resources, your company can reduce on-premise overheads because you do not need to maintain brick-and-mortar costs.
Charges can vary greatly depending on which country your developers are located in. Latin American developers, for instance, earn an average salary of $24,100 a year. According to Payscale, an average yearly salary for a US-based software developer is $76,526. Latin America is the best place for US companies to nearshore their development.
- Outsourcing IT strategies
Making intelligent investments into products that sell is crucial as your business grows. A low cost of operations will help you grow your revenue. When software is developed with a proper application of agile methodologies, outsourcing can prove to be helpful. Outsourcing projects overseas and having another team build your products is no longer possible. The product and business managers must work collaboratively with experienced engineers during regular business hours. It is a low-risk, strategic business decision to augment your software engineering team with nearshore developers.
- Improved Return on Investment (ROI)
It is ROI that drives businesses to outsource development in the first place. Offshoring may initially be less expensive, but you could end up paying more due to the difficulties that arise. You may experience management problems, underperformance, lack of control, poor communication, etc.
Alternatively, nearshoring might seem expensive initially, but it produces better results and saves money over time.
- Tax savings potential
Several major IT service providers are regulated by governments trying to support the industry by creating and enforcing tax laws that would benefit the companies. The fact that most businesses turn to offshore software development is another benefit they do so; they can have it as a means of reducing their taxes legally.