Nearshore software development: 10 benefits for your company

6 min read
Jan 18, 2024 3:50:54 PM

Nearshore software development consists of obtaining a supplier, geographically and culturally close, to take part in all or different instances of a development project. This supplier must have a talent pool of highly qualified professionals capable of completing the client's tasks on time and to the highest quality standards.

This service varies according to the needs of each company. For example, the nearshore service provider can create teams from scratch with different professional profiles designed to meet an objective. There are also cases where the work of the nearshore partner consists of reinforcing an in-house team with profiles and roles that are difficult to find in the market.

In other articles, we have already talked about the roles that a nearshore service provider can provide. So today, we want to delve into some key benefits of these strategies when companies outsource with the right partner. These benefits are:

The benefits of nearshoring software development go far beyond cost reduction. Here are some of them:

1. Allows flexible team building

As we said before, a nearshore partner can create dedicated teams capable of carrying out specific projects, but they can also be part of a Staff Augmentation strategy.

In these cases, it is expected that the roles required at different stages of the development process evolve. Initially, specialists in specific areas, such as DevOps, might be necessary, but the project may need other skills and profiles in the later stages of the same development project.

Such adjustments are possible if the nearshore service provider has a strong enough talent pool to make the necessary adjustments promptly.

Create a team thatfits your needs

2. It grants you access to a highly specialized talent pool

The devaluation of local currencies against the dollar made highly trained and specialized roles working from Latin America more accessible. However, it is crucial to move forward with caution.

If you want to reduce costs and positively impact the project, choosing nearshore service providers with rigorous recruiting processes is crucial.

You should also check the organizational culture of our potential partners. An environment in which learning is encouraged, knowledge is shared, and each collaborator is part of a community that helps them improve and solve technical problems are promising signs.

Soft skills are yet another critical element to factor in. A good nearshore partner must consider skills such as communication and leadership in its recruitment process

3. Cultural proximity leads to proactive personnel

Another advantage of nearshoring over other outsourcing strategies is that the cultural and geographic gaps with our partner are relatively low.

Similar time zones or being able to visit them within a few hours of flight time simplifies project management to a great extent. However, the advantages of this proximity go much further.

A good nearshore partner can meet the objectives assigned to them, but their cultural proximity allows them to understand the needs of your business. Therefore, it is normal for nearshore partners to go beyond their tasks and start contributing ideas and proposals that significantly increase the value they bring to the table.

Leverage the creativity of your IT talent

4. Better communication allows sufficient supervision

Cultural proximity can also simplify tasks related to project oversight. Having an external partner does not mean we can sit back and wait for results. On the contrary, a close and fluid relationship between the client and the service provider is necessary to ensure that the project fully meets the objectives.

Most IT professionals in Latin America have a high level of English, which, added to cultural similarities, allows the person in charge of the team to assign tasks, answer queries, and follow up on progress in an agile and effective way.

Enjoy the percs of cultural closeness

5. Unlocks Agile integration

One of the critical advantages of nearshoring is its ability to accelerate development projects. In a successful nearshore strategy, the external team must be able to put their hands on the job quickly, efficiently, and without friction.

Your nearshore provider must have a robust talent pool to accomplish this challenge. It is also essential that the talent it provides has experience integrating into new projects in the most agile way possible.

React promptly to new opportunities

6. Reduces cost

Cost reduction is one of the most apparent benefits of nearshore software development. Thanks to these cuts, many companies have been able to invest more time and resources in strengthening their value proposition.

The technical capabilities of Latin American professionals allow companies offering nearshoring services to have a very competitive balance in terms of price and quality.

It is true that other outsourcing strategies, such as offshoring, can offer more pronounced cost reductions. However, these options offer little added value provided by nearshore talent and its ability to go further, propose solutions, and contribute beyond the objective's simple achievement.

Pay less forexcellent talent

7. Works within a similar legal framework

A successful nearshore strategy needs a supplier in a country with a favorable legal environment.

One of the major concerns in this regard is often related to intellectual property protection. However, paying attention to possible tax advantages and data protection regulations is also essential.

Reduce risk

8. Suppliers with decades of experience

Latin America has suppliers that sometimes have up to 30 years of experience in the software development business. This work is backed by long-standing relationships with significant finance, fintech, and retail players.

Additionally, some regional companies are part of the network of competency partners of essential companies in the technology sector, such as AWS.

The competency partners become so because they have demonstrated their technical capacity by creating solutions for their clients. You can read this article to learn more about the advantages of working with a company with this type of recognition.

Work with world-class companies

9. Improves the quality of your product

Nearshore improves your product not only because it can get you testing specialists capable of using QA tests to guarantee the quality of your software.

Having a nearshore partner gives you the necessary resources to react quickly to opportunities, creating products and services that reach the market promptly and not when it is too late.

In addition, the development methodologies based on constant deliveries with which many nearshore providers work allow you to have greater control over the development of your product and detect errors that could impact ROI if you need the tools to find them on time.

Enhance your project management

10. Reduces risks and improves ROI

This benefit should come as no surprise. We have already talked about many aspects with which a nearshore partner can help you reduce risks and improve delivery times and the quality of your product, not to mention the cost reduction you get without sacrificing the expertise of the professionals working on your project.

There is just one more thing left to highlight. Thanks to Nearshore software development, you can react quickly to difficulties and unforeseen events that may impact the ROI of your project.

Optimize resourcesand enhance your value proposition

Geographic and cultural proximity to suppliers, coupled with their experience in successful projects, assures you that problems such as poor performance or lack of communication will not affect the proper development of a project.

If you want to start a conversation with a nearshoring provider


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