The trend of outsourcing software development to other countries has gained popularity as of late. While some businesses are turning to offshore development companies (meaning providers located in far-away countries), many are opting to employ nearshore alternatives.
If you’re based in the United States, this would usually mean using South American software development services located in countries such as Argentina, Brazil, Chile, Costa Rica, or Peru. If you work in Western Europe, you might turn to companies or developers in countries like Ukraine or Poland.
Why is nearshore outsourcing becoming a trend? Let’s explore some of the key reasons why businesses around the world are looking to their neighbors for their software development needs.
1. Location, location, location
Geography is a key reason why a business in the U.S. might look to South America development services or an organization in the United Kingdom might opt for an Eastern European company. For one, the overlap in working schedules is a huge advantage. When you use offshore developers, you could be 12 hours apart, meaning you’re working when your providers are sleeping and vice versa. This can present a problem if you need to contact your developer with an urgent request.
With nearshore services, you’ll be in the same or a similar time zone, streamlining communication. Based in New York City? If you outsource software to South America — say Buenos Aires — you’re contending with just a one-hour time difference.
Additionally, if you want to meet with your team in person, it’s usually just a direct, relatively cheap, quick plane ride away. You’ll also likely find that your proximity to one another means a better cultural fit.
2. Technical capabilities
When you outsource your software development, you’re often working with highly trained, skilled experts. You have access to a worldwide pool of talent, and when you opt for nearshore developers, you eliminate risks such as language and cultural barriers.
South America software development services are on the rise, for example, and thanks to the accessibility and quality of education in many Latin American countries, businesses in the U.S. have access to more and more talented professionals. These providers are often able to fill a need that can’t be met by in-house or even onshore developers.
3. Language compatibility
We touched on this above, but it bears repeating: language incompatibility can be an enormous problem when you use offshore providers. However, nearshore developers are often fluent in English or your native language. With South America outsourcing, for example, you’re working with professionals who probably learned English at an early age. This means better communication and fewer hangups — literally nothing’s getting lost in translation.
4. Legal regulation familiarity
Remember when France’s Commission Nationale de l’Informatique et des Libertés (CNIL) fined Google with the equivalent of $57 million for violating the European Union’s General Data Protection Regulation (GDPR)? The case underscores the need for tech companies to stay on top of the legal regulations governing the practices of the areas in which they operate.
You’re ultimately responsible, of course, but if you’re operating in the U.S., South America software outsourcing services are much more likely to be aware of the laws in your country and advise you accordingly than a provider in, say, India would be. This is especially true if the company partners with American businesses regularly.
5. Cost and ROI
While offshore services are often the cheapest options, hangups like language and cultural barriers, as well as mismatched working schedules, can lengthen project timelines and increase costs. Nearshore providers are not only typically cheaper than onshore alternatives, but they also tend to give you the best return on investment overall. You’ll be receiving high-quality services at a fraction of the price you would be required to pay for onshore developers.
There are no guarantees when it comes to software development — or any service — but in many cases, nearshore outsourcing will give you the greatest value for your money. Always remember to do your due diligence when hiring an employee or team, in-house or not.
If you’re in the U.S. and thinking of using South America software development services, investigate the different companies available. Pay attention to their portfolios, reviews, references, websites, and other materials before signing a contract. Ask plenty of questions, too. A nearshore development team can often give you high-quality, cost-effective products, but it’s up to you to do your homework and choose the best partner for your needs.