Introduction
Have you reached a point in your career where you have been wondering why a large number of organizations prefer to look for IT services in other countries or on other continents? We have the answer!
in Software development, IT strategyBy Raquel Pereira, Communications Specialist
The fact is that all companies want affordable and high quality services, and often they may not find this solution in their native country. For this reason, several Outsourcing models have been created to support these organizations in finding and recruiting the best talent: Offshore, Inshore and Nearshore.
However, depending on the individual need of each company, there may be conflicts with time zones, cultural inconsistencies and language barriers. By combating these challenges, the Nearshore model has gained an advantage in the business environment, offering the same services without the external hassles of projects. But what is the definition of Nearshore Outsourcing anyway?
As for the definition of the term, Nearshore Outsourcing (in other words, Nearshoring) is a process of delegating IT-related services, projects and teams to companies that are located in nearby countries.
For example, if your company is based in the UK and you want to transfer or create software development projects, Portugal becomes a great option: the same time zone, easy travel through existing air connections, similar business culture and you will still find affordable values when it comes to recruiting real talent.
However, before you make a choice and go with Nearshoring, we recommend to compare all approaches with the various outsourcing services, to get a full picture of their differences:
- Nearshore outsourcing means you are based in the UK and hire a team from Portugal.
- Offshore outsourcing means you are based in the UK and you hire a team from Mexico.
- Onshore outsourcing means you are based in the UK and hire a UK team as well.
Let’s take a closer look at the benefits that nearshore software development offers and how they can be used by your company:
- Travel convenience: even with today’s world accessible for remote working, there will always be a need to interact with the team face-to-face, which makes nearshore flights far more appetizing.
- No need to deal with time zone differences: as a rule, a client company and a nearshore company live in the same or similar time zone, so they do not suffer from time differences and can communicate during normal working hours.
- Similar culture: the level of efficiency of communication also depends on how proficient English is and a similar cultural background. Divergences in traditions or different national holidays can have consequences on your project.
- Cost-effectiveness: even if the Nearshore model can be less cost-effective than offshoring, on an immediate level, it can greatly reduce the client company’s fixed costs. Not only with accessibility to lower rates, but you also save a substantial part of your budget on travel and HR services.
