Nearshoring has gained momentum even before the pandemic. But the rise of remote work and social distancing have only put IT outsourcing services in a stronger position.
According to Statista, the total amount of spending on IT services globally is predicted to reach $1.1 trillion in 2021.
Why nearshore software development?
Nearshore outsourcing is a process of delegating software development tasks to third-party companies in neighbouring countries. Compared to offshore and onshore outsourcing models, nearshore software development offers cost minimization, increased efficiency, and geographical closeness, streamlining communication and onsite visits.
With the growth of the business, delegating responsibilities to the remote development team helps to forget about the painful hiring process and concentrate on the product and its core values. Software development providers are not for replacing in-house specialists but rather to help them complete certain tasks.
But how to choose the right nearshore software development company when there are so many options available? Here are some of the key factors to consider while choosing:
1. Explore potential partner’s experience
The experienced nearshoring vendor has already gone through the outsourcing process. So they will know all the possible pitfalls and paperwork details, including permits, taxes, visas, etc. For that reason, it is beneficial to look for a partner who has been around for a while, worked in the industry and encountered similar challenges.
It’s vital to investigate the reputation of an outsourced partner in the industry. To narrow the choices, you can start with checking vendors’ official websites. Look for testimonials from confirmed previous clients or case studies. Reliable vendors are not afraid to show or discuss their previous solutions because they demonstrate a vendor’s ability to meet clients’ needs.
2. Pay attention to security practices
Driven by the pandemic, an increase in the number of employees working remotely has proved the importance of maintaining security. It’s no different when it comes to a nearshore development partnership. Ask a potential vendor about their cybersecurity practices, such as managing sensitive information or creating backups.
Some of the nearshore development companies set up an individual network for each client, thus eliminating the data exchange between teams. Don’t hesitate to check how exactly your potential partner will guarantee cybersecurity in a remote environment.
3. Communication process matters
Live communication between the project team and customer should be one of the top priorities. Nearshore partnership minimises the difference in working hours, streamlines knowledge sharing and allows finding the best solution for a certain problem in real-time.
Look at the project management tools a nearshore vendor is using. With the right communication platforms, you will be able to easily reach out to the team and monitor every step in your project process.
4. Don’t ignore tech expertise and language proficiency
Before partnering with a nearshore company, assert whether its software developers have relevant experience and qualifications. To achieve better results, look for the external team with skills that will surpass or complement your in-house team.
Another essential thing to consider is the language fluency of the external team. Language is the glue that sets the internal team and nearshore specialists together by ensuring effective communication. Lack of language competence may result in many misunderstandings, reworks and disappointment over the final product.
5. Look for flexibility and unified cultural approach
Businesses should seek for nearshore software development partner that is scalable and ready to adopt changes when necessary. Wondering why is this important? Software development is quite a bumpy process and only those who can react and adapt quickly can make it more efficient and cost-effective. Moreover, flexible outsourcing partner can seamlessly integrate with your internal team and adopt your company’s culture.
6. Don’t rely solely on price
The low price is very tempting when selecting a vendor, and the price is definitely one of the most important things to consider. However, it should not be higher on the priority list than the potential partner’s experience and reputation. Professional nearshore partners that can develop a high-quality product should be more appealing than low price points.
Key takeaways
Even though finding the right partner may be difficult, doing extensive due diligence can help you with that. And choosing an experienced nearshore outsourcing company can help your business put your processes in place to flourish in today’s virtual landscape.