4 Most Common Questions on Nearshoring Answered

2020 and 2021 have been interesting years, as more companies opted for remote working than ever before. Because of this trend, companies realized the benefits of nearshoring, which greatly influences the way we work and the quality we deliver to all our longstanding partners. But many people have questions regarding nearshoring. What is it, how does it differ from offshoring and its benefits? We present to you the 4 most common questions people ask about nearshoring - answered.

4 Most Common Questions on Nearshoring Answered

2020 and 2021 have been interesting years, as more companies opted for remote working than ever before. Because of this trend, companies realized the benefits of nearshoring, which greatly influences the way we work and the quality we deliver to all our longstanding partners. But many people have questions regarding nearshoring. What is it, how does it differ from offshoring and its benefits? We present to you the 4 most common questions people ask about nearshoring - answered.

What is Nearshore Software Development?

 

Nearshoring is co-working and using different resources with an organization in a country nearby with lower average wages but highly qualified teams. Typical nearshoring locations in Europe are Croatia, Serbia, Romania and Bulgaria, among others. Outsourcing and co-working with organizations in countries further away, such as China, India, or the Philippines, is called offshoring. Nearshoring provides solutions for companies that want to outsource projects and business processes without the boundaries of traditional offshoring.

 

 

What are some of the benefits of nearshoring?

 

The most significant benefit of nearshoring is that it helps organizations in their sourcing as it’s easier to find the right professionals very fast. Apart from that, it helps organizations cut costs for outsourcing services and, in some cases, manufacture. While offshoring was rather popular some years ago, this is slowly starting to change as more and more companies opt to nearshore their business to nearby countries. Offshoring can also pose different challenges in project management. The lead times can be longer due to the time zone differences, there are transportation logistics which can be very complex, and sometimes even hidden costs that companies don’t consider. In case you want to calculate the hidden costs of hiring an internal developer, Typeqast’s calculator can help you.

 

 Another benefit nearshoring has over offshoring is avoiding language barriers and cultural learning curves. Partnering with an IT provider closer to the home office also brings down travel costs, which is rarely considered, making nearshoring a good business strategy. Apart from that, geographical proximity is a significant benefit not only because of costs but also because of the same time zone. Companies have more control over the process, and everything is done without any delays, making the overall communication much more straightforward.

 

 

What should one look for when choosing a nearshoring partner?

 

It is very challenging to share your vision and your business goals with an external partner, and that it’s why it’s important to always choose a nearshore company you can fully trust. The main things you need to consider before selecting the right nearshore team are the following:

 

The experience of the team

Most companies showcase the examples of their previous work online, and they are also willing to demonstrate their expertise to attract new clients. In some cases, they cannot do so because confidentiality agreements are very common in the IT industry. This is why it’s essential to thoroughly explore the online portfolio of the nearshoring company you are interested in, read their case studies, and bear in mind that the projects showcased are just a portion of their experience. You will also be able to get in touch with the team and ask any questions you might be having. 

 

The team’s reviews

The most reliable references to get are client reviews of the nearshoring company in question. It’s possible to read different testimonials on the company’s website, but it’s also essential to check external sites specializing in collecting reviews from clients and comparing them. These reviews will provide you with a clearer idea of the business model of the nearshoring company in question and will help you evaluate the company’s skills and reputation.

 

Transparent communication

Most nearshoring companies nurture transparent communication, which is yet another benefit of such companies, and one of the things that should be considered prior to choosing. Nearshoring companies such as Typeqast should be giving straightforward answers to the client’s questions and helping them handle misunderstandings. It’s essential to find common ground with them and define a style that can match both sides. 

 

Onsite presence

In case of nearshoring, most companies will have a local representative to make sure everything runs smoothly. This means that, even if the whole team of professionals is located in a nearby country, the project will have a representative in the company’s native country, making this easier. This is also due to the fact that the contracting preferably has to be done in a Western European country.

 

 

What problems can you solve with offshore and nearshore software development?

 

The practice of nearshoring is one of the hottest topics nowadays, especially when talking about nearshore software development. Although having in-house IT professionals has its benefits, more and more companies opt to nearshore their software development business to countries nearby. This happens due to several reasons, such as:

 

1. Allowing more frequent visits to the development / delivery site. In case a company wants to offshore their business, one of the benefits is the fact that the country where the IT professionals work from is closer to home.

 

2. Closer proximity can lead to a reduction of cultural discrepancies and language barriers. Success is closely connected to an inclusive environment where external IT professionals are integrated into the company culture, which is easier when a company nearshores.

 

3. Time zone compatibility. This means that they are often in the same or similar time zones, improving communication in the long run.

Better infrastructure quality. One of the benefits of nearshoring, and one that not many people talk about, is the fact that outsourced teams usually have better infrastructure than in other parts of the world. In order to ensure this, companies need to do careful research on what countries are best for them to nearshore their business to.

 

4. Lower wages. Nearshoring usually means that the IT processes are outsourced to countries with lower wages.

 

 

What can Typeqast do for you?

 

Typeqast is one of the leading nearshore software development companies in Eastern Europe, with offices in several countries. These nearshoring locations include Croatia, Bosnia, Romania and Serbia. With more and more companies and teams going remotely, the quality and delivery of these teams must stay optimal. Remote working has been the norm for Typeqast for a long time. This is why we can help your business by providing you top-notch IT professionals who will be a part of your team and help you meet your business goals. Our calculator can help you figure out how much you can save on hiring an internal developer.

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