Customers and rapid digital disruption have radically transformed the business landscape, uprooting a historic structure that centered power with institutions and allowed change to percolate gradually. According to Forrester, this is the Age of the Customer, and companies will need to continuously transform – or fail. In the post-pandemic, and with the rapid digitalization of businesses, the landscape is volatile, fraught with fast and furious shots of change, compelling organizations to embrace constant change or lose out to the competition.
Sadly, this constant innovation is not a plausible option for small and medium businesses or startups, that have a stringent budget and lacks the massive cash flow to support the rapid development of digital solutions, in line with the changing business needs, through in-house software development, especially with the ongoing tech talent shortage. For these companies, options, the costs of the ongoing digital transformation, and software development seem insurmountable. And for larger organizations, it’s high time to strategize and understand that software development need not always be costly and needs large in-house teams. Instead, businesses can today leverage nearshoring as a strategy to stay on the edge of development. As a result, numerous businesses have turned to growth-inducing tactics like nearshoring.
With an acute tech talent shortage, especially in the US, nearshoring to develop innovative digital products has become a strategic priority that offers big payoffs. This business strategy that goes beyond archetypal talent acquisition enables businesses to reap the cost benefits of an offshore location without language, culture, and time zone challenges that can be presented by other forms of outsourcing.
Top benefits of Nearshoring for US companies
- Cost Savings
Significant cost savings in software development are one of the biggest advantages of nearshoring. Hence, an increasing number of US companies are choosing Mexico and Latin American nations as their nearshoring destinations that will enable them to develop on-demand software at a lower average cost than retaining a full IT staff back home. And most importantly, the additional overheads, hiring, and training costs are also saved. Since they are located in nations with lower hourly salaries, nearshore firms may help you save money on your project or business. Also, a nearshoring partner’s proximity means less expensive travel (including cheap flights and sometimes the chance to take the travel by car) and a greater degree of control. The very point of nearshoring is to improve your service and add quality to what you do, cutting development costs at the same time.
- Time Zone Aligned
For US companies, when nearshoring to Mexico or Latin America would mean there is a similar time zone, which is valuable for agile software development sprints that may require closer collaboration during development and build transfer phases. This also makes it easier to brainstorm or initiate feedback and work on issues in real-time, ensuring better efficiency and increased collaborations.
- Get Rid of Communication Barriers
Highly essential for successful teamwork, communication becomes easier and in real-time between development teams and stakeholders when nearshoring. Latin American professionals are multilingual thus, facilitating better and more effective communication that can ensure that client outcomes are achieved.
- Access to Niche Skills & Emerging Technologies
Through nearshoring, organizations can get access to professionals, even with niche and specialized skills, in almost every technology. This is especially crucial since niche skills are quite scarce and highly expensive, and they may need them for a particular project only. In such cases, nearshoring can be the right strategy to introduce new knowledge and expertise to the businesses rather than hire them full-time.
- Closer Proximity
With nearshoring, the development teams are closer to the client location, thus ensuring not just time-zone aligned teams but culturally as well, avoiding cultural shock, and enabling quick and seamless integration with the internal teams of the client. It also reduces the travel time and expenses since it isn’t across multiple time zones.
- Augmented Workforce & Enhanced Productivity
Nearshoring is also an ideal business strategy when internal teams are overburdened and do not have the bandwidth to expand operations or develop solutions. And also, if you would want to add or augment the internal teams with specialized skills. Nearshoring allows you to dedicate resources to additional activities, thus not disrupting the focus of employees on core activities.
In a nutshell, nearshoring is a better business approach for organizations, beyond a talent acquisition strategy, and should be a priority if you want to grow your business cost-effectively, especially for companies in the US.
Capitalize on top IT talent without increasing costs by nearshoring your software development to Latin America with ShoreWise. We can empower your business by helping you scale operations by building, growing, and managing remote tech teams in Latin America. Through remote staffing and direct placements, we ensure that your business finds high-quality talent to continue developing your technology teams, fill skill gaps, and respond to scaling needs.