IT Nearshore Outsourcing & It’s Benefits for US Companies
In this edition, we will review the challenges faced by leaders of software development projects and the changes in the market that have led many companies to look for ways to optimize costs while maintaining high-quality standards.
What is nearshore outsourcing?
Nearshore outsourcing is the practice of getting work or services done by professionals in neighboring countries rather than in an organization’s own country. These providers offer similar time zones that will not affect the work of decentralized, remote teams.
The most common outsourced jobs include software development, technical support, and call center-related jobs.
What is the difference between nearshore, onshore, and offshore?
While nearshore outsourcing involves hiring services in nearby countries, offshore outsourcing involves employing or hiring services in more distant countries. These options starkly contrast with same-country outsourcing, which is simply employing or hiring services from someone outside the organization but within the same territory.
For example, for US companies, nearshore outsourcing may be done in Latin American countries.
“Nearshoring to Latin America is a growing market fueled by a strong technical talent base, language proficiency, understanding of American business practices, adherence to current software methodologies, and lower costs for U.S.-based companies,” says Kibernum Country Manager Marko Knezovic.
The selection of outsourcing destinations largely depends on the company’s requirements and the work involved.
Advantages of Nearshore
- Greater geographical proximity– This means communications will be easier since the subcontractor has a similar time zone. For companies outsourcing abroad, time zone differences can be challenging to manage when meetings are needed or when a quick response is required.
- Budget Savings – Hiring Nearshoring services is much more cost-effective; costs may decrease depending on the type of job and area of specialization sought.
- Expertise & Variety – Nearshoring allows companies to expand their capabilities by offering quality talent with a wide range of expertise.
For organizations interested in outsourcing, a nearshore outsourcing company can help provide quality service at a lower cost while also helping to facilitate the adoption of organizations’ internal processes and protocols by effectively contributing to project development.
“The talent world around us has changed. Companies are finding it extremely difficult to find IT talent. If they find the talent, it takes significantly more time to hire, costing a lot more than it did, and then the company often faces retention issues. Kibernum has made the strategic decision to address these challenging times with people passionate about innovation and driven about technology, offering safe nearshore opportunities to U.S.-based companies,” said Kibernum Global Resource Manager Mili Zivkovic.
What to look for when choosing a Nearshore service provider
Different factors will determine the success or failure of a hiring process through a Nearshore provider. These include:
- Talent retention rate – The updated figures indicate that about one-third of the workers in the IT sector have changed jobs in the last 24 months. Therefore, it is essential to have suppliers that ensure a high talent retention rate. This will allow operational continuity and reduce costs.
- An up-to-date skillset – It is important to choose suppliers that promote the education of their talents, allowing and promoting continuous training.
- High safety standards – While every company has its own information security protocols, looking for vendors that consider security one of their pillars is critical. This way, the risk of breaches or loss of information is minimized.
- Experience and support – Currently, you can find a varied offer of providers that offer nearshore service. Still, looking for companies that can demonstrate support, good customer experiences, and guarantee the quality of their services is essential.
If your company or software development project is looking for efficiency, agility, quality, and support, please get in touch with us, and we will help you take your team to the next level!