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 service outsourcing is the practice of getting work or services done by people in neighboring countries, rather than in an organization’s own country, always looking for a similar time zones, that will not affect the work of decentralized remote teams.
The most common types of jobs that are outsourced 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 offer a stark contrast to 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 that is fueled by a very 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.
Selection of outsourcing destinations largely depends on the company’s requirements and the kind of work involved.
Advantages of Nearshore
Greater geographical proximity
This means communications will be easier, since the subcontractor has a similar time zone. For companies using outsourcing abroad, time zone differences can be difficult to manage when meetings are needed, or when a quick response is required.
Hiring Nearshoring services is much more cost-effective; costs may decrease depending on the type of job and area of specialization sought for.
A greater number of talents available
Nearshoring allows companies to expand their ability to have quality talent.
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 do find the talent, it is taking significantly more time to hire, it is costing a lot more than it did, and then the company is often faced with retention issues. Kibernum has made the strategic decision to address these challenging times with people who are 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
There are different factors that 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 important 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, it’s important to look for vendors that consider security as one of their pillars. 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 aNearshore service, but it is essential to look for companies that can demonstrate support, good customer experiences, and guarantee the quality of their services.
If your company or software development project is looking for efficiency, agility, quality, and support, please get in touch with us, and we will support you in taking your team to the next level!