With transportation and technologies developing at a faster rate, the entire world is becoming smaller day by day, making it possible for organizations to undertake nearshore outsourcing. Now companies located in the particular country can work with the other companies located in the neighbouring countries by forwarding them their business operations which either can’t be performed by the in-house team or can be completed at higher operational cost. Here this guide will walk you through everything related to nearshore outsourcing.

What is nearshore outsourcing?

When it comes to the meaning of nearshore outsourcing, it is nothing but a process of delegating some operations, specifically software development tasks, to the organizations located in the neighbouring countries so that operational expenditures can be controlled better.

For instance, your company is located in the USA, and you want to move some part of the operation that the in-house staff from abroad can’t complete. At the same time, you are looking for ways to cut down the operational expenditure but don’t want to deal with a different time zone. In such a case, your best bet is to look for talent in a neighbouring country like Canada that can operate successfully. Apart from reduced cost, nearshore outsourcing Canada will offer you cultural proximity, convenient location and time zones, and similarity in the language.

What are the reasons that companies are choosing nearshore outsourcing companies?

Following mentioned benefits are the reasons why companies hire nearshore outsourcing companies:

  • Geographical Proximity: When outsourcing the projects to the companies located in the neighbouring country, you and your project manager may need to visit them for meetings costing you the travel expenses. But travel cost incurred in nearshore outsourcing is much less compared to offshore outsourcing.

Usually, the distance between the home development hubs and the nearshore markets is covered by the direct airlines allowing direct travel to and from the meetings. Now you need not spend on the hotels for a staycation.

  • Fewer or no time-zone difference: With nearshore outsourcing, the partnering organizations are mostly located in the countries having the same or nearest time zones, allowing you to spend maximum time on efficient communication during working hours. In case there are any queries related to the projects, there is no need to wait for the appropriate time to communicate the same to each other; they can be answered right away.
  • Saving operational cost: It is almost instant communication that plays a huge role in saving a big part of the budget compared to offshore outsourcing when developers mostly lose the paid time on waiting for the response of the home company. Also, now that there are direct airlines to the neighbouring countries, it facilitates easy and fast travel, which further allows you to save money on the flight’s tickets.
  • Offering cultural and language similarities: Now that operations are outsourced to the companies located in the neighbouring countries having similar cultures and languages, the software development process is becoming much simpler and quicker.

The commonality in the language makes it easy and faster to communicate every detail about the projects. Also, similar culture probably intends the bank and public holidays on the same day eliminating the issue of project delays.

  • Compensates for shortage in the staff: In case your company is suffering from a shortage of staff, then the best solution to augment this problem is outsourcing software development projects to the neighbouring countries. Engineers working in outsourced companies are used to completing the project-based work and offer flexibility to dive into the new projects using all qualitative standards. The similarity in the language and culture allows the faster and smooth completion of the operations.
  • Improving efficiencies: If your company has come across a giant software development project, it is wise to divide the whole project into different tasks and outsource them to the companies located in the neighbouring countries, allowing you to distribute operational expenditures. You can assign the core task to your in-house core team. They hired teams working as the sub0-teams will add flexibility to the development process leading to improved efficiencies.

What factors to consider for choosing a nearshore software development company?

It can be difficult to choose the nearshore software company offering the best value and performance. Considering the below-mentioned factors will make it easy to choose the right nearshore software development team:

  • Check the time zones: Time zone is the major problem faced by the home company when executing offshore projects. It is always better to select the nearshore software development company located in the country having no or limited time difference allowing effective and smooth interactions.
  • Experience in the industry: Always opt for the nearshore companies having not only sufficient knowledge about the software development technology but also the particular team must understand the needs of the industry. And real understanding comes only from years of industry experience.
  • Communication process: When outsourcing software development projects, you may want a team with whom you can communicate easily. It is fair that you want to work with a team good in technology. However, the particular team needs to understand the same language as spoken in your country. Therefore, look for the language similarities when hiring a particular nearshore company.
  • Having the ability to scale: When looking for a nearshore software development company, see if the potential company is capable of scaling. There should be transparency in terms of work done by the team of software developers. In case the team lacks transparency, then you might also face the issue of lack of visibility. In case the potential team cannot focus on multiple projects, then it will only result in wastage of the investment.

Wrapping it all up!

In case you are wondering how to recruit the best team in Canada for outsourcing your software development projects, then you should consider hiring a Canada recruitment agency. These agencies are equipped with professionals who are well versed in nearshore recruitment, meeting the requirements of the companies.