Businesses need to make critical decisions about their operational and strategic adaptability to grow and technology plays a vital role in ensuring this. As businesses focus on realizing their business vision, an outsourcing partner can help resolve several issues like shortage of time, staff or technical expertise needed to achieve the goals.

Outsourcing is employing a third party to carry out a company’s duties, operations or processes instead of completing the work using its resources. Based on location, outsourcing firms can be categorized into:

• Onshore (choosing a provider in your own country)
• Offshore (choosing a provider in a different country with a very different time zone)
• Nearshore (choosing an outsourcing provider in an adjacent/neighboring country with usually the same time zone) 

What Is Nearshore Software Development

When considering outsourcing software development, nearshoring has become one of the popular choices, as businesses assign their tasks to partners in nations with close proximity and with reduced labor costs. It enables businesses to collaborate with teams in these nations to work on projects.

Advantages of Nearshore Software Development

1. Better rates

Most companies choose nearshoring over other options because they are cost-effective. Nearshoring is usually cheaper than outsourcing to firms in the same country. High-caliber developers can be hired nearshore for lower rates than in the home country. This could be crucial for companies looking to save on expenses without compromising on quality or to startups with a limited budget.

2. Travel

Visiting the home nation of your nearshore development team might take a little longer but they are simpler than traveling to offshore countries in a different time zone. Since these companies are usually in the same time zones, it facilitates communication and frequent visits.

3. Cultural compatibility

You are faced with fewer awkward situations and misunderstandings by selecting partners who share your culture and work principles. Communication and association patterns can impact the relationship between businesses and their outsourcing partners and their partnerships can at times fail due to cultural communication barriers. Gestures, eye contact, words, values, beliefs, etc. that are completely normal otherwise may be extremely offensive in other countries.

4. Proximity

Before beginning a project a significant amount of planning and decision making is required. As you are probably aware, issues with projects generally arise when it is least expected. The swift and successful resolution of these issues determine whether the entire effort succeeds. These procedures undoubtedly take a lot of time and require good coordination between the two parties. Doing this being in opposite hemispheres, would be challenging.

It is highly possible that you and your outsourcing partner are at work simultaneously, especially when both parties reside in the same time zone. This means you are only a phone call away in an emergency. Nearshoring software development will typically benefit those who require frequent in-person interactions and immediate availability of a backup skilled workforce in unforeseen circumstances.

5. Access to talent pool made easier

Choosing and creating a project involves many factors like skills (such as Android or iOS app development), budget, execution, monitoring, raw materials, etc. Nearshoring allows you to gain access to subject matter specialists, familiar with advanced technologies and who have experience working on projects similar to yours. When there is access to such a skilled workforce, it makes the development process beneficial and productive. You can start working towards your business objectives rather than wasting time searching locally for the workforce with the necessary expertise.

Some Disadvantages of Nearshore Software Development

Choosing a nearshore outsourcing partner may carry some disadvantages and these must be considered before the choice is made. 

• Additional costs

If your developing team is unfamiliar with your primary business, the software development may be full of unexpected events leading to additional expenses or longer than usual project completion time. You can protect yourself from such risks by choosing an appropriate form of contract which includes fixed pricing agreement, regular communications, commitment to the project, etc.

• Confidentiality

There is certain critical information that ought to remain within the company at all times. However, to fulfill your project the vendor must at least familiarize themselves with your company. You can stay safe by preparing a Non-Disclosure Agreement (NDA), used to protect the secrecy of the confidential information between the parties to the agreement. 

• Language hurdles and challenges

In most situations, some nearshore companies may speak a different language than you speak or may have difficulties with the language you speak. This does not however mean that you will not be able to communicate. 

• Verifying skills

Finding a trustworthy partner to take care of your development chores can be hard, particularly if you’re working with someone in a different country. Even if you’ve done your research and chosen a qualified group to handle your project, it may be challenging to confirm their level of training or experience.

How To Choose the Best Nearshore Outsourcing Team

Choosing a leading nearshore software development team can be challenging considering the advantages and disadvantages of the same. Below are some pointers that can help you select the best team for your project:

• Before starting the project, create a list of requirements to outsource your software development and make it clear to all involved. 
• Deal with a business that has a strong track record. Companies with years of experience will be able to deliver high-quality work better than the ones who do not. 
• Try getting feedback from the references regarding their experiences, giving you an idea of how well they perform and meet their deadlines.
• You don’t want jobs to go unfinished because your developers are unsure which ones require more focus. Thus making communication an essential part.