Most companies have embraced remote work since the pandemic started. It led to an adjustment in their business model and employee engagement that has shown a more significant influence on productivity, benefiting both the employers and employees with a 77% increase, according to the CoSo Cloud Survey.
Consequently, a study carried out by Harvard Business Review indicates that many organizations would adopt remote work as a new normal even for the future. Thus, they need to have the software to run their businesses remotely. Those companies may end up considering using nearshore or offshore software development to expand their team.
How to Decide Between Nearshore and Offshore Outsourcing
Outsourcing is when a company uses a third-party vendor to perform its activities such as software development functions or hiring Information Technology resources. You can either choose between nearshore and offshore outsourcing.
Nearshore outsourcing involves getting the job done, such as software development, by the service provider in neighboring countries with similar time zones to your country. Offshore outsourcing is when a company incorporates an external organization located overseas with time zone and culture differences to perform some of its activities. Both have their advantages and disadvantages. Thus, you can choose to use nearshore or offshore outsourcing, depending on your company’s needs and preferences.
However, there are some other factors you need to consider before deciding between the two. They include:
Time Zone
Since you are outsourcing from a different country, you need to consider the time zone difference. How will the difference affect your operations? Can you easily navigate through the time zone without any glitch? How will it affect your communication with the third-party? Choose a time zone that will work for you, your employees, and the third-party.
Talent Pool
A talent pool is a database created by recruiters of potential and top job candidates. Offshore software development companies have a talent pool full of experts in different areas. Before deciding, you will need to go through their talent pool to find if they have the developer you need. Talent pools will help you determine whether you should use nearshore or offshore outsourcing.
Expertise
We all want to get value for our money as we expect to get what we pay for at the end of the project. You will not get the same results from a beginner as compared to an expert. You can also go through reviews and feedbacks, assign an online assessment test via tools like HackerRank to determine their level of expertise, and choose who you need.
Law Labor
Different countries have different labor laws in regards to employment, remunerations, or work conditions. Some may be favorable, while others may not. Hence, before deciding which outsourcing method to use, consider both your country’s and other countries’ labor laws.
Cost of the Developer per Hour
Your budget will help you determine the right option depending on the developer’s cost per hour. It only makes sense to go for the developer you can afford to ensure a great working relationship. Take into consideration that too low prices can mean low quality of work.
Nearshore and Offshore Software Destination
Some Latin American and Eastern European countries are leading outsourcing destinations with tech-pools, IT graduates, and universities that solely focus on technological education. Thus, making them perfect for either nearshore or offshore software destination. They include:
Ukraine
Ukraine has a vibrant tech environment with thousands of Ukrainian developers, tech companies, R&D centers, and tech events. There are experts in Java, C#, JavaScript, PHP, and Python. Hence, making it a popular software development destination for offshore software development. Moreover, it has five main IT hubs, including Kyiv, Kharkiv, Lviv, Odesa, and Dnipro.
Romania
Romania has at least eight main regional IT hubs, including Iasi, Cluj Napoca, Oradea, Timisoara, Bucharest, Craiova, Brasov, and Sibiu. Also, it has a trained, multilingual workforce of software engineers. Yearly, there are about 7,000 IT-graduates. Romania’s IT industry contributes 6% of the country’s GDP and is expected to rise. Moreover, Romania is legally friendly, making it suitable for outsourcing.
Argentina
Another outsourcing software destination to consider is Argentina due to its highly talented professionals, cost-effective pay rates, and attractive government subsidies. Additionally, it’s home to vastly successful companies that invested in software technology from the private sector. With Buenos Aires as the leading tech hub, several other hubs, clusters, and technological parks are in other provinces.
Colombia
Colombia can also be a good option for offshore software development. It is suitable because it possesses excellent connectivity and infrastructure, has a gradually growing IT talent, and excellent English skills. Its tech-pools consist of Bogota, Medellin, Bucaramanga, Barranquilla, and Cartagena. It is a country with more than 5000 tech companies that continue to grow.
How to Outsource Offshore Software Development
Outsourcing offshore software development can be challenging, especially if it’s your first time. You will spend many resources trying to find the right team or developer within your price range and trusted vendor. You can consider such software development outsourcing services as Clutch to review feedbacks, ranks, case studies, or YouTeam that operates a database of vetted vendors.
With YouTeam, it makes it safe, easy, and fast for you to find what exactly you need depending on the type of project. All you got to do is contact YouTeam, and within 48 hours, you’ll have CVs of available software engineers ready for an interview.
Wrap Up
It would be best to learn more about nearshore and offshore software destinations to ensure you find the perfect outsourcing destination. Do your study and find out which option works best for your company.
