What Should One Look For When Choosing a Nearshoring Partner?

Choosing a nearshoring partner can seem like arduous work. When it comes to outsourcing, there are three directions you can take: onshoring, offshoring, and nearshoring and the difference is in where you outsource from. Onshoring implies opting for a location within your company’s country, offshoring for a foreign one (which is far away from yours), and nearshoring is an outsourcing practice that means hiring a team from a nearby country.

 

It is targeted toward companies who are looking to save money, while still receiving results of the highest quality. It can also be useful for new, smaller companies, as nearshoring startups are usually already established in terms of equipment, offices, and worker vetting.

 

Although this is not a new method, it can still present numerous challenges, especially in terms of not being sure whom to trust and hire. Therefore, we have compiled a list of questions you need to ask, both yourself and your potential employees.

What Should One Look For When Choosing a Nearshoring Partner?

Choosing a nearshoring partner can seem like arduous work. When it comes to outsourcing, there are three directions you can take: onshoring, offshoring, and nearshoring and the difference is in where you outsource from. Onshoring implies opting for a location within your company’s country, offshoring for a foreign one (which is far away from yours), and nearshoring is an outsourcing practice that means hiring a team from a nearby country.

 

It is targeted toward companies who are looking to save money, while still receiving results of the highest quality. It can also be useful for new, smaller companies, as nearshoring startups are usually already established in terms of equipment, offices, and worker vetting.

 

Although this is not a new method, it can still present numerous challenges, especially in terms of not being sure whom to trust and hire. Therefore, we have compiled a list of questions you need to ask, both yourself and your potential employees.

Benefits of nearshore outsourcing 

 

There are many benefits to nearshoring. For example, it is much less costly than to hire and maintain an in-house software development team, while the quality of work exceeds expectations. The developers have already gone through the selection process by their outsourcing company, so that’s one less thing you should worry about. The personnel you would be bringing in are a team of experienced specialists. In this way, you would also have a direct communication channel with your team, whether remotely or in person.

 

When working with nearshore IT provider, the time and cultural differences are significantly less than when opting for offshore. This will certainly make working with them easier and smoother, mainly when it is time to organize a meeting or discuss specifics of your project. Furthermore, IT experts from Eastern European countries are highly skilled in the English language, so no communication barrier will arise.

 

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What should one look for when choosing a nearshoring partner?

 

Experience

 

When you decide to look for a nearshoring partner, there are undoubtedly many things you need to be on the lookout for. The first, and maybe the most important thing is the team’s experience. Many IT companies boast their portfolios on different online partners, so that is something worth looking into. Similarly, case studies are usually prominently displayed on companies’ websites, which can be a good starting point for your research. But do keep in mind that there are privacy agreements in place that may prevent some examples of their work from being shown.

 

On that same note, you should check how the IP rights transfer has been handled in previous cases, and if that is something that could cause potential issues in your cooperation. Although it is crucial to peruse the companies’ portfolios and case studies to gain insight into their IT expertise, be wary of their nearshoring experience as well.

 

Reviews

 

Similar to how reading case studies can help in deciding on a nearshoring partner, reading reviews can provide you with even more valuable information. Companies sometimes display testimonials and reviews on their profiles; however, everyone indeed tends to choose only the positive ones. There is a way around this. It would be best if you direct your attention toward third-party sites and forums which focus on more objective customer reviews. You can also find comparisons between different companies.

 

Communication

 

As with every other aspect of business, communication is vital in nearshore outsourcing. You need to consider the time zone factor: it is easier to communicate if it is approximately the same time for you and your IT providers. The channel through which you will be giving directions and through which your developers can ask questions and give updates needs to be direct and straightforward, or else easily avoidable misunderstandings might jeopardize your project. Ask your potential partners which modes of communication they usually use, and how often they communicate internally: will your project be discussed in weekly/daily meetings, or are they more prone to exchanging information during the process?

 

Presence

 

When contracting a nearshoring company, it is preferable that it is done in a Western or Central European country. It is also significantly easier to cover the basics of the project verbally and in person. For those reasons, the nearshoring company will have a representative physically present in the host country. Their job is to ensure that all procedures run as smoothly as possible and to assist in communication and project management. The availability of this representative is of great importance – so you need to pay special attention to this factor when looking to hire a nearshoring service.

 

Questions you should ask

 

Below, you can find an assortment of questions that you need to have an answer to before you commit to a specific team of nearshore software developers. It would be best if you answered some of these before starting the selection process, while others are more oriented toward the interviewing process.

 

- What are my company’s specific needs for this project?

- What are my company’s expectations from the developers?

- What is my company’s budget?

- Have we looked into enough companies, and have we definitively narrowed down our options?

- Where is my ideal company based?

- In which field do they have the most expertise?

- Does this specific company have enough experience?

- Do they provide high-quality results promptly?

- Do their positive reviews outweigh and outnumber the negative ones?

- Have they dealt with security restrictions and IP transferring prior to this project? How was it handled?

 

 

Conclusion

 

Nearshoring is the perfect solution for you if you are looking for a cost-saving way to work with IT experts without factoring in cultural and time differences. There are many things you need to consider during the process of deciding on one particular company to cooperate with. You need to define your technical needs, budget, and expectations. Then, you must make sure that the ones you hire are experienced in the field you are working in, and that they can deliver results that are both presented at a set deadline and of the highest quality.

 

Typeqast is a nearshoring company with plenty of experience working with remote teams, specifically from Easter Europe. With experts in various IT fields, Typeqast boasts a possibility for you to hire different agile teams specific to your company’s needs.

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