We get a lot of valid questions from new and potential clients. Mainly, they want to know how nearshore software development outsourcing can benefit their business. They are interested in the value of this model, what it consists of, and how to achieve successful outcomes.
Naturally, they also wonder: When is the right time for nearshoring? Can we scale up or down as needed? Why not just offshore?
Inspired by these questions, we blended them into a list of common and specific ones. Below, we answer all of them with the necessary clarity to help you make informed decisions. Let’s dig in.
1. What is nearshore software development?
Nearshore software development involves outsourcing IT tasks or projects to professionals in nearby countries through a service provider operating in the same or similar time zones. The geographical closeness reduces communication challenges, and the short travel distances can ease in-person meetings when necessary, though a remote-first approach often works effectively.
Nearshore teams typically integrate with your in-house staff, working on core functionalities or handling separate extension tasks.
2. Why choose nearshore software outsourcing over offshore?
Primarily, businesses use outsourcing to focus on their core business better and cut costs. According to a Deloitte Global Outsourcing Survey, 65% of companies perceive outsourcing as a means to focus on core functions, while 63% see it as a cost-cutting tool.
So, the traditional choice for outsourcing software development might be offshoring because of lower upfront costs. However, it often brings hidden expenses linked to management and communication issues because of time zone differences, cultural gaps, and mismatched business etiquette.
Moreover, optimizing resources without sacrificing the quality of your development processes is critical. Outsourcing to a nearshore development company gives you the best of both worlds and the most promising return on investment. You get high-grade professionals at a more reasonable price than local hires and a higher chance of an overall match and fit.
Additionally, you should consider your company size, resource situation, and project complexities. These factors often lead to another common question: When is the right time to consider nearshoring?
3. When is the right time for nearshore software outsourcing?
Determining the right time for IT nearshoring depends on various factors. Generally, it is suitable in the following scenarios:
- Managing Growth Phases: Your business is a startup or scale-up trying to handle increased workloads and needs a less volatile outsourcing model.
- Established Processes: You already have a solid enough in-house team and efficient processes but need additional reliable capacity.
- Specialized Expertise: Your project requires specific technical skills that are more difficult to maintain with offshoring or too expensive and scarce to find locally.
- Flexibility: You seek to scale your team up or down based on your current demands, making it easier to manage resources and meet deadlines.
4. How quickly can you build a nearshore team?
The timeline for building a nearshore team depends on the number of professionals and their required skill set. Here is the typical process:
- Understanding Needs: We begin by discussing the necessities for your project and team.
- Pre-Scan Market Report: We assess the available candidate pool, considering market trends and salary data.
- Estimation of Search Time: Using the pre-scan report, we estimate how long it will take to find the right talent.
- Finding the Right Talent: Candidates undergo a thorough process involving HR, technical, and client interviews to confirm they fit culturally and have the necessary skills.
While we do not have readily available talent, we keep a database of pre-screened profiles to speed up the process. Typically, assembling a team takes a few weeks to a month and largely depends on the notice period of the professionals, as they may be transitioning from current engagements.
Simply put, we aim to find the most suitable candidates quickly enough without compromising quality.
To see this in practice, you can read about our successful collaboration in modernizing a client’s legacy application.
5. What makes nearshore development work?
Successful collaboration with a nearshore software development company hinges on these necessary elements:
- Transparent Communication: Maintain open and honest communication channels to guarantee both sides align on goals, timelines, and expectations.
- Openness to Feedback: Trusting your provider’s expertise and being receptive to feedback improves issue resolution without losing control over the process.
- Defined Processes: Use standardized workflows and proper documentation to integrate the nearshore team smoothly with your in-house staff.
- Strong Project Management: Effective project management practices like agile methodologies and regular progress tracking are essential.
In all our initial and ongoing efforts with clients, we help set these elements in place, monitor them, and focus on their improvements as the partnership evolves. To learn more about the approach, check out our guide to successfully setting up a nearshore development team.
6. How do you manage retention and stability?
Unlike recruiting agencies or dev shops with a “fire and forget” mindset, we focus on creating dedicated development teams who are our full-time employees and operate exclusively with you.
As mentioned, the process begins with careful recruitment, effective onboarding, and regular check-ins to refine and improve cooperation. Also, matching the professionals with engaging work and blending them well with your in-house team assists with motivation and commitment.
We understand that the approach may not suit every business. However, in our seven-year track record, clients report positive experiences, appreciating the continuity and dedication it brings to their projects.
7. How is security and compliance handled?
Robust security and regular compliance measures are critical, particularly in a remote setup. Clients retain full ownership of their source code and repositories, maintaining control over their projects. In addition, we have strict non-disclosure agreements (NDAs) signed by all team members to protect sensitive information.
Some of the procedures we implement include:
- Encrypt data to protect sensitive information.
- Use firewalls and access controls to prevent unauthorized system access.
- Set VPNs and remote desktop connections for secure remote work.
- Apply strong cloud security and encrypted hard disks for enhanced data protection.
- Manage passwords through dedicated, secure applications.
- Adhere to GDPR and other international standards for data protection.
Bonus – what makes Xessable different?
Our vision was clear from the start: to create a company by professionals for professionals. Having worked in the software outsourcing industry, we understand what works and needs to change. Here’s what sets us apart:
- Developer-Led Expertise: Founded by software engineers, we understand the technical nuances of software development. Such a background allows us to approach projects with a practical, hands-on mindset, ensuring we deliver innovative and reliable solutions.
- Human-Centric Approach: Successful software outsourcing is more than technology; it’s about people. We focus on collaboration, communication, and tailoring our services to meet distinctive client needs.
- Local Expertise, European Reach: With an abundant and growing IT ecosystem in North Macedonia, we deliver top-tier nearshore development services. Our closeness to Western Europe and operational base in the Netherlands means we share similar cultural values and work ethics with our clients. With that, we also address contractual and compliance factors with relative ease.
- Flexibility and Scalability: We present adaptable solutions, allowing clients to scale their teams as needed, whether for specific time-based projects or ongoing cooperation.
- Commitment to Quality: We prioritize quality in everything we do, following best practices we customize and update regularly to deliver high-standard, reliable solutions.
We strive to be more than just a service provider—we aim to be a trusted partner dedicated to your success.
Lastly, if this selection has inspired you, don’t hesitate to reach out! We welcome all questions, even the toughest ones. As always, you can use our contact form below to get in touch.
