Looking for new ways to cut costs and increase efficiency? One strategy that is becoming more and more popular is nearshoring. And it’s not only becoming popular, but it’s also becoming effective!
A quick reminder of the nearshoring concept?
Nearshoring is the act or action of partnering with a company in a nearby country to provide or receive services. This is a great way to get the benefits of outsourcing without having to be connected overseas.
According to Clutch, in 2022, 90% of small businesses will outsource business functions like IT and software projects. Also, 21% of the firms outsourcing current tasks plan to hire a nearshore company.
The value of a nearshoring partner
There are many reasons why nearshoring can be a good partnership for your business. Here are just a few:
1) Cost savings: First and foremost. By partnering with a company in a nearby country, you can save money on logistics and shipping costs.
2) Time preservation: You can reduce the time needed to communicate with partners and build relationships better and quicker thanks to constant communication.
3) Increased efficiency: By having someone familiar with your culture and language handling your needs, you can reduce communication errors and speed up the process of getting things done.
4) Cultural compatibility: Working with a partner who shares your cultural values, you avoid misunderstandings and the long-distance timeframe. Plus, you speed up the learning curve.
If you want to learn more about nearshoring and its benefits, we invite you to read too How does my business benefit from nearshoring?
How to prepare for a nearshore partnership?
Ask yourself the following 2 key questions:
Is it a project of a few weeks, or do I need a team indefinitely?
Project duration is a vital factor to consider when thinking about nearshoring. Looking for a freelancer makes more sense if it lasts a few weeks or months. However, investing time and effort in the right outsourcing choice is recommended when the project takes longer and a team rather than an individual is required.
Bringing a nearshoring provider on board with local knowledge and the infrastructure and solutions you need can be cost-effective and innovative.
How much am I willing to invest?
There are different reasons businesses come across the concept of nearshoring; cost will always be on top of the list of reasons. You will not risk quality by choosing and trusting a partner with your products. The reasons your cost will be lower are all consequential due to the place and way the nearshore firm is.
IT professionals are, unfortunately, expensive. You will have to spend extra money and time recruiting to fill those positions. However, if you choose the right partner for your project pipeline developments, the quality and effectiveness of your product will not be jeopardized.
Learn the types of nearshoring structures to find your perfect fit!
Nearshoring is the perfect approach for numerous strategic, real-time, and complex software projects. After a company has decided to hire an outsourcing provider, the next step is to consider how the contract will be set up.
From developing new solutions to the modernization of legacy software, nearshoring services provide a great way to collaborate on B2B, B2C, and SaaS solutions without being side-by-side.
It provides an agile approach to assist with more ambiguous projects requiring real-time discovery and collaboration. The nearshoring model ensures that essential solutions are developed under budget and delivered within strict timelines.
Overall, nearshore development combines speed, cost efficiency, and innovation all rolled into one.
There are types of implementations as well!
There are two standard models to choose from when partnering with a nearshore company:
Integrated & Dedicated teams
1. Integrated teams through nearshoring services can be a powerful way to fill gaps in an existing development team. By working with experienced nearshore partners from Latin America, you’ll share a similar or sometimes the same time zone allowing companies to access talent-rich areas and expand their technical capabilities with an easy understanding and immediate answers.
With time and materials contracts or fixed component pricing, nearshoring is beneficial when the right people need to be brought on board. When searching for nearshore partners, it is essential to choose wisely and make sure your partner has robust hiring practices.
2. Dedicated teams will provide you with a complete, efficient development solution.
You can get a lot done quickly without needing your resources or disrupting other projects!
By working with a partner who has delivered team projects before, you gain the added advantage of an experienced team from the very beginning of your project. This turn-key solution offers benefits such as a pre-selected dedicated team based on your specific project requirements.
Contracts like these are almost always fixed-price monthly, so budgeting your project is a breeze. Often, they’re also outcome-based. The benefits of each model will depend on the company you choose to partner with.
Is nearshoring easy? What is the final verdict?
When you are in this process, you probably know what you need and how you want it to look and work but are overwhelmed by possibilities. The growth and enhancement of your business are things to take seriously, and no nearshore partner should ever minimize your ideas and goals.
So no, nearshoring is challenging. This is because, like any other relationship, it can come with pros and cons, and all firms are different. But once you find the one, it can bring your business a future you didn’t expect but will love to see.
Good read suggestion: Nearshoring in Costa Rica?
DNAMIC is built on quality, trust, and the undeniable and unshakeable desire to have and offer the best. The best talent, the best outcomes, and the best ideas come to life. Nearshoring is not easy, but it makes it easy for you to get the talent and technology you want and your business deserves.
Another great read: The 10 questions to ask a software firm before hiring.