When software development is not deemed core, it is often outsourced. At the same time, critical but costly efforts may be distributed to offshore captives. Rewards, including cost savings, agility, decreased time to market, and domain expertise, may accrue, but only with effective outsourcing and offshoring execution.
Otherwise, actualized risks wipe out potential rewards. (1)
Not all enterprises are aware of the main differences between nearshoring and offshoring as businessmodels:
Offshoring is seeking a service provider located in a nearby country. This means enabling the task done in a different country. Compared to outsourcing, this may refer to contracting work externally toanother company either within the country or nearby nation.
Traditionally, ‘nearshoring’ has meant a company sub-contracting part of its work to an external company. It usually operates in the same time zone, in a country with similar financial and legal systems. (2) Nearshore Development means extended IT teams working in a more integrated, cohesive way, without sacrificing corporate culture or approach to work. It means creating an extension of your team with cultural similarities that happens to be in another geographic location. To most, outsourcing is a no-brainer. You tap into a worldwide pool of talent at a lower cost. Of course, there are downsides, including the resource investment in establishing the outsourcing process itself. (3) Yet, most business processes that benefit from outsourcing make the decision simple and easy for most business owners. This is not true for the software product development market. While the real benefits of hiring a nearshore team are there, things are not as straightforward. The development of a software product requires consistency throughout your workforce.
It’s easy to understand why the outsourcing industry is still growing at such a rapid pace. It’s an effective and reliable cost-saving measure that allows you to produce results almost immediately.New software and broader adoption of remote team culture have gone a long way towards reducing the traditional challenges of outsourcing.
Today, there are about 18.5 million professional software developers in the world. A high concentration of these professionals is in the US (19%), China (10%), and India (9%). The Deloitte survey (4) found that, although companies increasingly expect innovation as part of their outsourcing arrangement, they “still struggle to define, track, and motivate innovation from their serviceproviders.”
Over the past decade, nearshore development has become a popular trend in software development. Before you go about establishing a nearshore development team, you should carefully identify your goals. Consider the objectives you want to accomplish and go from there. Neither you nor your team can work on a project without a strong vision and definition of its goals. That being said, make sure also to communicate your ideas accurately. Pinpoint the profiles of the people you are looking for and define the team culture. When outsourcing, you are most prone to tackle working with people from another culture. Be acquainted with how cultural differences might affect the workflow. Remember, time zones also matter if the project is sensitive to the people involved’s work hours,outsourcing to a nearshore team.
You need your team members to ask questions and get answers quickly as if they could get up and ask a co-worker at another desk. They are also your full-time employees, and if they feel integrated,they will work harder for the success of your software project. This is not always possible if that co-worker and that desk are thousands of miles apart! Bydrec has observed in good software companies the use of consistent training on knowledge base systems, public and honest communication of changes, and a cultivated public and digital forum where everybody can ask questions and answerothers.
When Herb Collins, head of development at SaaS vendor, Resmark Systems, needed to find a development team. He needed one he could trust to build business-critical software; he turnedto specialist nearshore agency Bydrec. “I
needed to scale up,” says Herb. We looked at outsourcing as a solution, but India is now too expensive for an SMB like Resmark. I wanted a solution that was easy to set up and then manage.” Time zones wouldn’t cause a significant communication issue between HQ and the Development teamon another continent. As Collins says, “This is more than hiring a few software engineers; it’s building a team that can be a critical long-term part of the business.”
Despite your own employed team’s cultural differences and affordability, keep in mind that you workwith people and experts assigned to do real work. Although you don’t see them physically, they are vital members of the team willing to help develop your product and contribute to meet your company’s goals and objectives. Communicate often with your team leader and members how things are doing to know if there are challenges that they are facing. Explain to them clearly your vision, ideas, and goals. Recruit contractors who share the same vision as you. As Collins comments, “Brian at Bydrec made this such a simple process, and I was looking for a vendor who had great communications built into their model. We needed strong individuals who would fit into our US-based team (even though they would be based in South America). Where we would not be locked into long-term contracts.” As Collins points out, “If you’re building a robust development team that is ready togo from the outset, nearshoring is a no-brainer.”
As you can see, all roads leading to a successful project rely on good communication. This becomes tougher if you pick an IT outsourcing partner who works in a completely different time zone or other methodologies. One of the best tips for building nearshore developer teams is ensuring you doyour due diligence. As outsourcing adoption continues to grow, so does the number of companies performing in this space.
As with any rush, an influx of development outsourcing businesses means that you will frequently see enterprises take off virtually overnight, only to vanish just as fast. The challenge is, researchingcompanies from afar is not always easy.
Unsure how to choose a nearshore business that will not just take your money and then disappear?
Here are some suggestions to help you:
- Use Clutch, Upwork, or specifically LinkedIn as online resources for
- Check they have a working phone number, email, and an established web presence? If so,you are off to a good
- Find out how long they have been in business and what awards, if any, they have won. Make sure you can verify this through a trustworthy, third-party
- Look for references and encouraging reviews from real You could even try reachingout to past clients to learn more about the experience.
- Ask for whitepapers and case studies for more proof that your potential partner candeliver
Once you have the basic information on some providers, it is worth following a series of steps to helpyou navigate through nearshore software services:
1/ Establish A Time Zone, And Destination Best Suited For You
Some countries such as Canada, the USA, and Brazil lie in several time zones. The time difference between Vancouver, B.C (Canada) and Rio de Janeiro (Brazil) is five hours. This can hardly be callednearshoring software development. On the reverse, there is no time difference between Vancouverand Tijuana (Mexico) and a three-hour difference between Vancouver and Quito (Ecuador), which sounds nearshore. Hence,either look in which part of the country the provider dwells when searching for a genuinely nearshoring experience or broaden your search parameters. (5)
2/ Make A List Of Requirements
As part of making a case for simple steps to building your nearshore development team, compose a feature list ranking the features you’re looking for from the most to least significant. Also, decide onthe required timeline. Save the feature list until you have your selection of potential companies (step four). Based on this knowledge, companies will offer you an implementation path and a rough estimate on budget.
No clue on how to compile a list of requirements? No problem.
Make sure to write down your aims and what you envision, then ask the companies to estimate them.Be as specific as possible.
3/ Choose Top Providers
After choosing your destination and making a feature list, make a list of the leading companies. If possible, study feedback from clients and company profiles. It would be best if you had alreadyresearched their websites, read about their portfolios and services. This step helps you understand each company’s experience and strong points.
4/ Shortlist Five And Schedule Interviews
- Reduce your list to five companies you like the look
- Send your list of conditions from step two to the remaining five businesses on your
- Schedule an interview with each company and check:
- How quickly do they respond?
- Do they provide a free estimate?
- Do they want to schedule a call for more precise requirements?
- Do they show interest in your project?
(Ensure you send the same set of requirements to all companies safeguarding you can compare results between providers)
5/ Pick The Best Offer
After you have received feedback from your top five candidates, compare interviews and assign points for each component; examples include (elaboration of requirements, understanding of your project,feedback, budget and timeline, level of interest.)
Then choose the team with the most points. Ensure they can handle your priorities such as deadlines,budget, and quality. Make sure you keep your list as your first choice might not be able to start soon enough. Or, worse, it starts but stumbles, and then youmove to your second provider on the list.
Once You Have Decided On The Provider – What’s Next?
We can break the process of setting up your new development team into eight steps.
1/ Coordinate with the manager to get a detailed summary of the open positions’ skills. You shouldindicate budget caps and filter questions to weed out unwanted candidates.
2/ Meet with your nearshore lead to go over the details and timelines needed to fill the openpositions. This is an essential step as the nearshore lead or team leader is vital to its success.
3/ Process and review candidates sent from your nearshore team. Communicate the feedback on good and bad candidates to sharpen the nearshore recruiting process. The more input presented, the less time is wasted on candidates that do not fit the profile.
4/ Coordinate interviews with the selected candidates with the nearshore lead.
5/ Create a list of the top 5 candidates worth hiring after passing the interviews. Make sure you interview for personality as well as technical. Not all tech-worthy candidates are a good team fit.
6/ Decide soon. Waiting around for the magical Unicorn may waste time and lose possible top-rated candidates to other companies. Candidates usually apply for many roles, and the demand isexceptionally high.
7/ Once you have hired and completed the contract, make sure the onboarding process goes assmooth as possible:
- Setting up a VPN
- Computer requirements
- Candidate’s schedule
8/ Communication is critical in the beginning as well as ongoing. Have follow-up meetings with thenearshore team to give them reports on the candidate. Proactive communications are the way to goin resolving any issues.
Hiring a nearshore outsourcing company in a neighboring country also ensures software compliance with legal requirements like GDPR (General Data Protection Regulation), copyright, and intellectual property laws. Today, data security, a significant concern, includes outsourcing to another company with a familiarity of the tasks and has expertise in adapting the software to corporate and legalrequirements with the right solutions. All the steps above are designed as an aide or road map to help when searching for and setting up your nearshore software development team. If you want to avoid making expensive mistakes and guarantee a successful outcome to the most effective investments in the software development life cycle, contact the team at Bydrec at (888)-864-3124 or Email: email@example.com with any questions on nearshoring. When cost-effective, real-timecollaboration is critical to the successful delivery of your software solutions, nearshore is the bestoption.
2/ Nearshore Software Development: Accessing Engineers in EU. https://www.zartis.com/widening-the-nearshore-definition-accessing-engineers-in-europe/
3/ How to establish a nearshore product development team?. https://www.devision.com/establish-nearshore-product-development-team/
5/ Nearshore Software Development Guide 2021. https://itechcraft.com/blog/guide-nearshoring-software-development/