Nearshore software outsourcing is when a company hires a software development team from a neighboring country to assist in achieving a project’s goals. For example, companies in the U.S. often outsource to Latin American software companies as their proximity offers several benefits.
Working with a nearshore company ensures timezone compatibility, which eases communication and workflow. Sharing a common culture ensures that the outsourcing provider understands the underlying principles of the project and has a compatible approach to software development and project management.
In brief, a good nearshore software outsourcing company will:
- Provide the technical skills to complete your project on time.
- Have a robust workflow that eases communication.
- Demonstrate a commitment to cyber security.
- Have a good reputation in the marketplace.
In 2020, the benefits of nearshore software development are starting to become more evident for all kinds of companies. A recent study by Computer Economics reveals that last year, large companies increased their IT spending on software outsourcing from 6.3% to 8.7%, while medium-sized companies increased their spending from 4.7% to 6.5%.
As more companies choose to outsource their development to nearshore providers, there’s an increasing need to define what a good nearshore software company looks like. This is our overview of what businesses need to consider when choosing a nearshore provider:
Tech Expertise That Bridges Your Skills Gaps
OUTSOURCING TO A NEIGHBORING COUNTRY IMMEDIATELY INCREASES THE NUMBER OF TALENTED DEVELOPERS THAT YOU CAN CHOOSE FROM
Working with an outsourcing company provides you with access to a larger talent pool. When hiring in-house, companies are restricted to working with developers within a small radius of their office. Outsourcing to a neighboring country immediately increases the number of talented developers that you can choose from.
Once a company has evaluated its internal team’s skills, it only needs to outsource the expertise that it lacks. For example, your internal team may have good UX design skills but lack the JavaScript knowledge needed to make your product function. When choosing a nearshore outsourcing company, make sure they offer the skills required to complement your existing infrastructure.
Effective Communication
According to Atlassian, 59% of U.S. workers say communication is their team’s biggest obstacle to success, followed by accountability (29%). Communication underpins every successful software outsourcing project. When choosing a nearshore company, consider how they respond to your questions. Do they reply in a timely, professional manner, or do they provide vague answers that raise suspicions about their commitment to involving you in the process?
A good nearshore outsourcing partner will place communication at the heart of their workflow. Using project management tools like Jira, Basecamp or Trello demonstrates a company’s commitment to clear communication. They enable software outsourcing teams to collaborate more effectively and communicate with clients directly.
Having open communication channels provides the client with an overview of how the project is progressing. It enables them to see who is responsible for what tasks and when they’re scheduled for completion.
59% OF U.S. WORKERS SAY COMMUNICATION IS THEIR TEAM’S BIGGEST OBSTACLE TO SUCCESS, FOLLOWED BY ACCOUNTABILITY (29%).
A Commitment to Security
70% OF SMALL BUSINESSES SAY THEY WOULD PREFER TO PAY FOR SUPPORT IN MATTERS OF CYBERSECURITY THAN DO IT THEMSELVES
According to a recent report published by Accenture, cybercrime will cost companies $5.2 trillion over the next five years. Microsoft Store’s Small Business Insights Survey reveals that 70% of small businesses say they would prefer to pay for support in matters of cybersecurity than do it themselves.
Despite the willingness of companies to outsource their cyber security, skills in this area are currently lacking. As more businesses turn to third parties to protect their products from cyber attacks, it’s important to know just how they plan to build security into your project.
A good nearshore outsourcing provider will be able to demonstrate their commitment to cyber security by providing you with an overview of their approach. They should be able to demonstrate how they handle sensitive data, storage, and backups. A robust security strategy begins in the planning stage of a project and should be continued right through to the testing phase.
A Good Reputation in the Marketplace
Before committing to hiring a nearshore partner, it’s important to carry out due diligence and check their reputation in the market. The first place to look is on the company’s website. Do they have testimonials from previous clients that attest to the quality of their work?
How about their portfolio? What projects have they completed in the past and what were the outcomes? A good nearshore development company should be able to substantiate their success on past projects with confidence, evidencing their results to show how they delivered a solution that met their client’s needs.
You may also want to contact their previous clients directly to gain more insights into what it might be like working with them. Likewise, third-party websites like Glassdoor, Clutch.co, and LinkedIn can be a good way to track down honest client reviews.
In summary, here’s what to look for in a nearshore outsourcing partner:
Tech Expertise: Ensure they have the skills that you need to complete your project. A good nearshore outsourcing company will be able to demonstrate its expertise by providing examples of previous work.
A Robust Security Strategy: Find out how they approach security and ask if they have a documented workflow process that they can share. How will they ensure the security of your project specifically?
Clear Communication: What are your first impressions of how the company answers your questions? Are they open and transparent in their replies? You should also verify how communication fits into their workflow process.
A Good Reputation in the Market: Carry out due diligence by checking how the company is perceived in the marketplace. Do they live up to their claims? Take the time to contact previous clients and read reviews on third-party websites.
