Why do companies nearshore?

Compared to offshore and onshore outsourcing, nearshore outsourcing is a lot less complicated and a lot more beneficial. In addition to having cultural similarities with the person or team you will be working with, geographic proximity means fewer travel costs, minimal time zone difference, and better communication.

Nearshore software development is a favorite solution for expanding your team at a low cost without sacrificing quality or communication.

Benefits	Drawbacks
Geographical Proximity	Language barriers
Cost savings	Usually higher cost than offshoring
Timely decision-making	Smaller talent pool

Nearshoring vs In-house

In-house software development isn’t an outsourcing software development model but it is worth mentioning in this context. If you are developing software, one of your options is to keep it all in-house, using the company’s own employees and resources. Many CTOs will tell you that in-house development teams are the preferred solution for scaling software operations. By building an in-house software development team, you have full control over the vision and product development. There are also much less barriers to communication.

That said, for many companies, building a highly talented in-house simply isn’t possible. Software development projects require multiple individuals with a myriad of different skills and expertise. Hiring specialists isn’t easy or cheap and depending on the location, can be near impossible.

Even if you do hire a full in-house team, you then have to make sure they are supplied with the right resources to get their job done. Again, this can prove incredibly costly, significantly increasing your project budget. And finally, building an in-house team mightn’t be the answer long-term.

Sometimes companies just need to work with a team of developers for a short or medium term project. Nearshoring and other outsourced software development options allow companies to scale down resources when they are no longer needed. It is much more complicated to scale down resources, when you’ve built an in-house team.

Considering Nearshore Software Development With TIGO Solutions

In this article, we have introduced you to the concept of nearshoring and how it compares to other engagement models. If you are considering a nearshore software development model, there are a host of different aspects to consider. At TIGO Solutions we have over a decade’s experience, providing scalable, expert outsourcing solutions to clients worldwide.

When it comes to increasing productivity and saving cost on projects, outsourcing can be an ideal option for any business. Nearshore software development has grown increasingly popular these days and it’s no surprise why.

Technological improvements in the past few years have made it possible for companies of all types–not just tech firms–to take advantage of the lowered cost of both nearshore and offshore development teams. By learning the benefits of nearshore software development, businesses can weigh their options and choose the outsourcing practice best suited to their project.

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