The Impact of Artificial Intelligence on Nearshoring

Outsourcing software development isn’t precisely a new practice. For years, companies have looked outside their countries to find the talent they needed to bring their software projects to completion. But what traditionally meant looking to far-off regions (mainly Asia) for offshore development has lately been transforming into a different practice that involves looking much closer to home. Hence the rise of nearshore development. 

There are numerous reasons for that: access to highly-talented developers, cost-efficiency, proximity, timezone alignment, and similar culture. All of those are driving factors of the increasing nearshore software outsourcing phenomenon, but here we’ll single out a huge trend playing a significant role in this transformation in the outsourcing world. We’re talking about the artificial intelligence (AI) revolution. 

Business AI

The Thirst for AI

Many people refer to AI as the next big revolution and it’s hard to disagree with that assessment. Given the huge promise that AI shows across numerous fields and the vast potential that’s still to be tapped into, it’s only natural to think about an AI revolution coming our way

In fact, such a process is already in motion, with many digital solutions that already integrate AI-based algorithms to carry out different tasks. From aiding with data analysis to get actionable business insights to its implementation in next-gen technologies like self-driving cars, AI is among us and it’s already showing its transformative power.

That power is precisely what’s generating a thirst in companies across different industries, that feel that AI can provide them with the competitive edge they need to stand out from the competition. Naturally, they need the development talent to integrate such complex technology into their solutions, which forces them to look to the market to find those software engineers. 

Some of the businesses that are more actively seeking for that AI talent include:

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    Tech companies and startups
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    Retail firms
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    Healthcare providers
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    Financial services
  • Manufacturers

Of course, the major players in those industries are hoarding the AI-talent for their own strategic developments. Thus, a lot of companies are being left out because they don’t have access to the IT talent they need to come up with their own AI-based solutions. That’s why they are increasingly turning to nearshore developers.

Quality as a Defining Key

Aside from the lack of available talent, there’s another major challenge in implementing AI. AI algorithms need to have the highest of qualities to perform at a valuable level. That’s because they are complex and sophisticated solutions that need to be trained through a comprehensive process that requires vast data sets of proven quality and successive training iterations. 

In the development world, quality has always been a crucial factor. But since AI is so specific, powerful, and massive, quality is more defining in the software that uses artificial intelligence. Can you imagine what might happen if an AI algorithm is poorly trained? It can lead to disastrous business decisions or, worst, to actions with dire consequences, such as self-driving cars driving carelessly.

Of course, quality isn’t something that you can buy. To get it, you need the greatest development talent you can hire. It all circles back to collaborating with the right software engineers, which, once again, leads us to nearshoring.

Why Nearshore AI Development

So far, we’ve seen that AI solutions need one fundamental thing (experienced professionals) that can deliver another crucial factor (high-quality products). Since many companies can’t get that fundamental thing locally, they need to look for it somewhere else, which leads them to software outsourcing. 

By outsourcing IT services, they can take their development needs to other countries or regions and take advantage of a whole range of benefits we’ve mentioned above. The region, country, and company they’ll pick will depend on each specific business and the project at hand: some will pick their partner based on budget, others to proximity, others will go with a referred company. Though there are no recipes to make the choice, a lot of companies favor nearshore alternatives over offshore companies. That said, knowing the difference between these two is crucial. 

What is the difference between Nearshore and Offshore?

Nearshore software outsourcing is different from offshore outsourcing in several key factors. For one, nearshoring means working with development companies based on countries and regions close to the hiring company. For its part, offshore is about collaborating with companies from far-off countries and regions. 

Thus, for instance, US companies can nearshore their development by hiring a company like BairesDev, located in Argentina. Should they choose to outsource to an offshore company, they should look for partners in India or China.

The seemingly small difference isn’t really small in practice – especially when it comes to AI development projects. You may feel that proximity doesn’t matter, as long as the talent and the quality is there but there’s more to it than meets the eye. With that proximity come added benefits. 

For example, US companies working with BairesDev have very similar time zones, which means that both the in-house and the outsourced teams will be working simultaneously, boosting collaboration. If they hired a Chinese company, the teams would have a hard time arranging meetings or managing real-time collaboration.

There’s also the added advantage of cultural proximity. A US company is more similar (culturally speaking) to a Latin American company than an Asian company. That can help further align the in-house and outsourcing development teams, which leads to smoother collaboration and fewer mismatches. Cultural proximity can also impact communication, as a company from a country near you has a higher chance of speaking your same language. 

Nearshoring - Your Next Source of AI Talent

As you can see, nearshoring has established itself as a cost-effective solution for teams looking for AI professionals and an unavoidable source of talent amid the current shortage. That’s because it can offer what all AI projects need – experienced IT teams that can quickly deliver high-quality output and take full advantage of the latest AI trends.

That’s why we can safely say that AI has propelled nearshoring’s growth in the outsourcing world. Given the massive interest in AI, a lot of companies have found nearshore companies to be invaluable partners in software development. We should know – BairesDev is a nearshore development company that has worked with countless companies to help them design and develop AI-powered algorithms of all kinds.

We’ve seen AI’s impact in the industry and fully understand why it happens: when businesses need quality IT solutions, nearshore companies have their backs. So, if you’re looking for AI solutions, don’t hesitate: contact BairesDev and let’s discuss how our nearshoring model can provide the value you’re looking for and help you boost your productivity.  

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