The Nearshore advantage: 5 key benefits of Nearshore software development
March 26, 2019
The rise of software development outsourcing as a competitive advantage has led to much debate over which of the different outsourcing models best applies to the goals of businesses in the United States. In this article, we’re looking at how the nearshore development model stands out from the rest as the top choice.
Outsourcing software development to a domestic or foreign third-party contractor or vendor has become the go-to strategy for companies in the United States looking to stay competitive in their market. The main reasons why companies choose to outsource include:
Nearshore software development involves engaging with a contractor which is geographically close to your location and therefore also has a similar time zone. From the perspective of US companies, nearshore providers can be found either in North America or Latin America, offering unique benefits when compared to traditional offshore vendors located overseas.
Key benefits of the nearshore development model
1) Proximity: Can’t get any closer than nearshore
When it comes to Agile software development, geographical proximity is a huge plus, as travel times and costs will be much lower than offshore locations. Whether you’re looking to visit a vendor or have them fly in to your office in the US, nearshore destinations provide easy access and quick travel time frames.
2) Team overlap & responsive communication: Tap into top talent in close time zones
Successful software development projects are predicated on efficient communication between teams. Nearshoring makes it possible for your onsite and remote teams to share similar (if not the same) time zones, therefore overlapping throughout their workday. Most nearshore countries only have a one-hour time zone difference with the US, the maximum being at a four-hour difference.
This is by far the biggest advantage of the nearshore model when compared to overseas vendors, because however skilled offshore developers may be, communication with teams so far away can prove incredibly challenging and may lead to project delays and other unforeseen risks if not carefully managed.
3) Cultural Affinity and Language Fluency: Much more ore alike than you might guess
Countries in Latin America share the Western cultural values of the United States, and in addition, most of its population has been following US pop culture and events since childhood. Whether it’s through sports, music, films and Netflix series, or late night shows, Latin Americans are regular consumers of US culture.
Moreover, Latin America’s software development workforce is mostly English fluent. In addition to government initiatives to improve English language teaching in public schools, private bilingual schools teaching English as a second language are very popular, and high-paying jobs tend to require language proficiency.
4) Skilled Workforce: Expand your team with seasoned pros
Talent shortage in the US market is one of the main reasons companies look to augment their teams by partnering with offshore and nearshore development companies. Both of these have highly skilled talent to offer, but the nearshore option provides the huge added benefit of proximity and similar time zones.
Universities in Latin America have been successful in responding to the growing demand of IT professionals, and governments continue to enact policies that foster the growth of the region’s workforce. A prime example of this focus on adaptation in the region is Uruguay, which became the top software exporter per capita in the region with a population of 3.5 million by heavily investing in its IT industry and workforce.
Top talent in Latin America is usually found in boutique development shops which specialize in specific technologies and work exclusively for the US market. These smaller-sized firms focus on quality and carefully hire and train their developers, with the goal of reducing any learning curve issues at the time of working along US teams.
5) Lower total cost of engagement: Best value for money
As a direct result of all the benefits listed above, the overall cost of nearshore development proves to be lower than the offshore alternative, despite having somewhat higher rates. Responsive, real-time collaboration between teams in similar time zones provides the ideal environment for successful projects.
When and how to leverage nearshore development
The two best use case scenarios for nearshore software development are as a team augmentation solution to address talent shortage in your home market, and as a way of delegating specific parts of bigger projects in order to focus on your core tasks.
At VAIRIX, we help our US partners through both of these services:
Team Augmentation: As a nearshore development boutique based in Uruguay and working exclusively for the US market, we can help augment your team on demand with seasoned engineers that work with the latest trending technologies, so you won’t have the added cost of going through a big learning curve.
Product Development: If you’re looking to outsource whole projects or given parts of bigger projects, we can help you set up dedicated Agile teams to bring your product to life.
The right nearshore development partner can help you maximize productivity and reduce costs while maintaining high quality standards. Get in touch with our team to learn how we can help you reach your business goals.