Nearshore Outsourcing: What You Need to Know

Onshore, Offshore, and Nearshore Software Outsourcing

As software development outsourcing becomes increasingly commonplace, three main models have emerged: onshore, nearshore, and offshore. Onshore outsourcing refers to contracting development out to a provider within one’s home country. Nearshore indicates an outsourcing partnership between organizations in physically proximate countries, and offshore is an arrangement between businesses in physically distant countries. 

BairesDev is a software development outsourcing company based in Latin America that serves as a nearshore provider to businesses in the United States and Canada and an offshore partner for Western Europe and beyond, working with startups and Fortune 500 companies alike. By adopting the nearshore development model, the company can offer a number of competitive advantages to organizations of all types, helping them achieve their technology-related business goals.

Nearshore software outsourcing

Talented Developers

Latin America has emerged as a region with some of the most highly-skilled developers in the world. For example, BairesDev, the fastest-growing nearshore software outsourcing company in Latin America, employs only the top 1% of software engineers through a rigorous vetting process. More than 1,400 experts work with a variety of technologies and methodologies to manage development and produce quality software. 

Businesses often choose nearshore outsourcing when they are unable to find the requisite specialization or skill set within their own country. This alternative allows organizations to connect with developers from other countries who are well-versed in certain areas and can offer hard-to-find competencies.

Time-Zone Aligned and Physical Proximity

In contrast to offshore developers, nearshore providers are aligned with their partners’ timezones. This means their work hours will overlap, facilitating better communication and collaboration. For example, Buenos Aires is just one hour ahead of New York City.

Nearshore partners can have virtual meetings and use chat platforms to discuss projects in real-time. This is more of a challenge with an outsourcing partner on the other side of the world, which will be in a vastly different time zone and have far fewer overlapping business hours, as is the case with India and the U.S.

Because nearshore providers and their contracting organizations are so close, they are typically just a short plane ride away. That makes in-person meetings all the more possible. This can make nearshore outsourcing partners an attractive option to businesses that want to thoroughly understand their service’s inner-workings and methodology, as well as get to know them face-to-face, rather than simply through a video conferencing platform.

Cultural Similarities

Another reason why many businesses opt for nearshore software development outsourcing is that there tend to be more similarities in culture between people in neighboring countries than those in far-apart areas. Communication is easier, and work styles are more closely aligned. This generally results in a stronger partnership and ability to meet expectations.

For example, according to the EF English Proficiency Index 2017, several Latin American countries are overall higher in English language proficiency than India and China, two countries commonly tapped for software development outsourcing. Argentina, where BairesDev is based, was named the Latin American country with the highest level of English proficiency. This is evidenced in BairesDev’s pool of professionals — each one is 100% bilingual.

Moreover, because of their physical proximity, nearshore developers often share similar methods of working and values with their partners. These individuals can assume they’re on the same page in terms of when they are expected to be working, how and when they’ll communicate, the results the business is expecting to achieve, and more. They can also expect them to have had similar educational backgrounds, which are reflected in their work.

Integration with Businesses

Some businesses already have a development team in-house, but they may be missing some key players or need an extra set of hands to work on specific projects or during a particularly busy period. A nearshore software outsourcing provider can often be helpful in these instances. They can assist with software development, quality assurance, and more.

Many organizations appreciate being able to have an outside team to integrate with and work alongside their own team on staff. This is a flexible model, and businesses can contract these services on an as-needed basis or as they scale their operations. It’s also less of an obligation than it would be if you hired a full-time provider. 

Outsourcing partners will help with the tasks you assign them and be careful not to step on the toes of the organization’s full-time staff. Often, the business will use its own engineering manager and other important employees to lead the project and keep everyone on track and working together harmoniously.

Lower Costs

For the most part, nearshore outsourcing costs tend to be lower than those of an onshore provider. Software engineers in the U.S., for instance, can cost anywhere between $80 and $150 per hour, while those in Latin America usually fall between $40 to $70 per hour — usually for the same level of work or even higher. This results in huge savings for businesses.

This is one of the biggest draws for organizations. Not only are they able to find development teams with specialized skill sets, but they’re also able to contract them at a fraction of the price of onshore developers. This is because the salaries tend to be lower in developing countries than those in developed countries despite the wide pool of talent.

Businesses also save money on fees like overhead costs, an involved hiring process, benefits, training, and, of course, full-time salaries.

Industries across the gamut turn to nearshore developers for specialized, high-quality work at a low cost. BairesDev is one of the most highly-regard nearshore software development providers in Latin America. Whether you’re looking for assistance with a project, IT staff integration, or QA testing, we will deliver timely, quality results. 

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