22/01/2018

7 reasons why every company must consider a nearshore development team

When offshore and nearshore sourcing were conceptualized, companies around the world were excited. Why? Finally, there emerged cost effective solutions that would enable the design and development of large software development projects. As a result, it allowed organizations to accomplish their business goals faster and with lower budget.

Today, nearshore and offshore sourcing are not only centered on cost cutting but they have extended to cover scalability, quality, specialized skills and expertise. Therefore, every company must consider extending its software development power with a nearshore or offshore team. Here are 7 reasons why:

1. Scalability

When a large project lands on your lap and immediately you are aware that your staff is unable to handle the project, and no matter what is the reason, you’re understaffed, luck of experts or got other tasks with higher priority, you will always say to your self “I could use another team…” and hiring part-time employees or a local outsource team could maybe help solve the problem this time but you know that it’s not a long term solution if you really want want to be scalable.

By choosing to hire nearshore sourcing, your company instantly becomes scalable and you get to enjoy the best of both worlds, you’re scalable without the overhead of hiring and managing in-house teams.

2. Focus on your core business

Hiring in-house employee comes along with cross the board overheads, human resourcing is time consuming, CV screening, head hunting, interviews, technical tests. Every manager knows that interviews and tests to candidates can be quite of a headache and very expensive in terms of management time.

Therefore, having a nearshore team, in some way encapsulates the management overhead and minimizes it to an interface between local management and nearshore management. It allows you to manage a smaller in-house team and occupy locally only the positions that you consider to be a must. This way extending your development to nearshore allows you not only to scale faster but also to better focus on your core business.

3. Lower your development costs

The differentiation in the economies between countries in the global world works for the benefit of everyone. The cost of living, employment laws and demand, unemployment rates and more cause sometimes a difference of more 100% in the hourly rate between countries that are geographically close to each other. This is a huge benefit as it helps to lower development costs significantly.

4. Less logistics

Choosing to offshore or nearshore your software projects is a plus for your company. Why? You don’t have to invest in more office space and working desks for the new team members. Not to mention accounting, salaries, holidays, letting people go can also be quite a headach. In other words, you cut on the logistics while enjoying the benefits.

5. Priority management

Whether you are a younger startup or an established company, you know what is the key for success; priority! priority! priority!

It is common for different tasks in an organization to be starved resource-wise. This affects productivity and the quality of work. Offshore or nearshore sourcing allows you to address task starvation in the company and in general better manage your priorities.

6. Flexibility

As R&D manager flexibility is a must, when you have a limited in-house team with low scalability potential you are less flexible and the organization is less prepared to react fast based on market changes. Having a team in nearshore or offshore gives you the flexibility you need, in tasks allocation, expertise and scalability up or down.

7. Improve productivity and collaboration

By learning how to work with distant team members you train your organization to work in a distributed working environment, it also improves in-house productivity and collaboration because once the organization adapts to working with a nearshore team, it will also know how to better communicate with in-house teams in another office or another floor.

There you have it. Your business can benefit more than ever from having a nearshore software development team. To find the best partner to empower your nearshore team, research extensively. Remember, great reputation equals top quality.

Good luck!

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