It’s official: More organizations than ever are utilizing nearshore development teams for their software development efforts.
A considerable 67% of Dutch companies and 75.58% of companies in the DACH region (Germany, Austria, Switzerland) outsource software development activities within the wider Europe region. Similarly, a growing number of businesses in the U.S. are seeking outsourcing partners in Latin America.
What are nearshore development teams?
Nearshore development is a software development model in which tasks, services, or projects are delegated to teams of developers in nearby countries or in similar time zones. An example would be a German company with a nearshore development team in Poland, Ukraine, South Africa, etc. or a US firm working with nearshoring teams in Latin America. These teams work as an extension of client teams, and provide ongoing support and expertise to meet software development goals.
Why hire a whole nearshore development team?
Hiring a nearshore development team can bring numerous benefits to your company, including the ability to scale quickly, minimize risks, and access a pool of highly skilled developers. By hiring a whole team, you can scale quickly, test new ideas, and minimize risks.
There are several benefits to choosing a nearshore development model for your business:
1- Cultural compatibility: Nearshore teams tend to have a better understanding of the culture and business practices of their clients, which can lead to improved communication and collaboration.
2- Proximity: Being in a nearby time zone allows for easier communication and easier coordination of tasks. This can be especially useful for urgent or high-priority projects.
3- Flexibility: With a nearshore development team, you have the ability to scale up or down as needed, and can easily add or remove team members as required.
4- Expertise: Nearshore teams often have a strong understanding of the latest technologies and can bring valuable expertise to your projects.
Overall, nearshore software development can be a cost-effective and efficient way to augment your in-house team and meet your business goals.
First Step to Hiring a Nearshore Development Team
Although nearshore development has many advantages, it’s important to ensure that you are partnering with the right team by considering operational, cultural, and technical factors.
When it comes to operational match, you should consider the time it will take to launch the project, the process for team set up, the pricing model, and any other operational details.
Cultural fit is also crucial, as you want to ensure that your team is able to effectively communicate and collaborate with your in-house team.
Finally, it’s important to ensure that the team you hire has the technical expertise and experience needed to successfully complete your project.
Alternatives to Nearshore Software Development Outsourcing
There are a few alternatives to nearshore development outsourcing, including offshoring and onshoring.
Offshoring involves outsourcing to a team in a different country, typically one that is farther away and has a lower cost of living. Popular offshore destinations include India, China, the Philippines, etc.
Onshoring, on the other hand, involves outsourcing to a team within your own country, with the client outsourcing software development to more affordable non-metropolitan areas.
Nearshore Development Team Setup: Case Study
One example of a successful nearshore development team setup is the Zartis team working as an extension of Steinbeis SMI, Germany’s largest private university. We were able to find developers with specific skills and were able to set up a team for Steinbeis, three times faster than the local German market.
To better meet customer demands in a post-COVID economy, Steinbeis wanted to build an innovative online education platform from scratch, including fully accredited degrees taught exclusively online.
We helped the team at Steinbeis define their goals and plan their digital transformation in detail. Then, we assembled a stellar engineering team with full-stack skills to deliver an end-to-end solution and provide ongoing support as an extension of the Steinbeis team.
Get It Right From the Start
If you’re considering hiring a nearshore development team, it’s important to do your research and find a partner that is the right fit for your company. By considering operational, cultural, and technical factors, you can ensure that your project is a success. If you have more questions on nearshore software development, you can find more information in the Nearshoring FAQs or reach out to us to have a chat!
At Zartis, our secret to success is extensive meetings at the beginning of the process, to learn about your needs properly & clear and constant communication in the later stages, to ensure alignment on your goals. If you need support in meeting your software development agenda and increasing your output, let’s talk!