Outsourcing business processes, particularly those involving information technology, to businesses in a nearby country or in a country in a similar time zone is known as “nearshoring.”
Some of the most well-known drives for choosing nearshoring are cost reduction, increased quality and efficiency, accessibility to qualified IT specialists and greater software supply chain resilience.
So what are the benefits of nearshoring, as seen by our clients and partners?
Cost efficiency
Working with a nearshoring partner is typically far more practical than assembling your own crew. By skipping hiring process-related costs and adding the location-related cost reduction because the businesses that provide nearshore teams are headquartered in nations with lower hourly wages, your business or project will incur less expense. Professionals in specialised businesses are typically better educated and trained; they have the chance to share expertise with their peers and advance their skills.
- Access to expert knowledge and focus on core competencies
It’s possible that your organisation or the entire region won’t have the unusual abilities or specialised competencies that your business might need. Due to the difficulty in locating, hiring, and retaining IT professionals, you must compete with other companies in an extremely competitive market. With nearshoring, you may quickly connect with experts in a particular technology that not only work in a similar time zone as you, but also have similar work values. This leads to fewer communication hiccups and explains why successful businesses typically focus only on their core competencies and delegate the rest to experts.
- Scale up or scale down at the speed of a rocket
Your business could occasionally see a sudden spike in needs. Having your own staff complete the extra work could demotivate them and pull their attention away from their essential responsibilities. This is especially true if the task is monotonous and/or repetitive. You can devote resources to core tasks by nearshoring IT initiatives, enhancing team morale and improving employee effectiveness.
- Access to a huge talent pool is another advantage of nearshoring. Countries like Romania are well-known for the generous IT talent pool. By placing your business activities with a software development company in a nearshoring site, you are no longer restricted to internal staff or exorbitant development expenditures, not to mention costs of recruitment and retention.
- Time and energy saving. A nearshoring partner can begin working on your project in a matter of weeks, sometimes in a matter of days, depending on the complexity of the project and technologies involved. If this business activity wasn’t already part of your organisation, there is no need to create a new department and spending time and money on hiring and training internal staff. The business offering nearshore services picks the best experts for you.
- Working in similar time zone. The time zone is one of the most important benefits of the nearshore business model over the offshore one. Working in the same time zones promotes a more dependable and effective staff, which has the effect of increasing work volume. The nearshore approach makes transit between areas much easier and more frequent.
In our nearshoring example to Romania, there are many flights each day that travel for about two hours to most main cities in Europe.
- Similar culture and high level of English speaking professionals
Successful teamwork depends on effective communication. Because team interactions take place in real time, they are significantly more comfortable. A common language is essential to ensuring that everyone is understood and that the work is completed in accordance with expectations. Project-oriented collaboration is challenging in an offshore paradigm due to different work ethics. Deadlines and work requirements might be perceived in different ways. Diversity in hierarchy systems can also have an impact on how quickly decisions are made and, consequently, how well the project is carried out. Even if there are mild cultural differences throughout Europe, the expectations for professionalism and productive work are largely the same.
- Comparable laws and IP protection.
When it comes to software development, intellectual property (IP) laws are critical. As your nearshoring team is located in Europe, they are more likely to operate under similar legal conditions. As a result, you will not land into any legal predicaments that could delay your project’s launch. If you want to protect your company’s IP rights, you can make sure that a non-disclosure agreement is being signed before the discovery call. We offer this option to all potential clients and partners, as it protects the rights of every party involved.
Have you considered finding a nearshoring partner? What are your needs and concerns? Let’s discuss this in a discovery call. Book an introductory call here and have us answer all your questions.
