Shortening Your Development Timeframes and Costs with Nearshoring

Shortening Your Development Timeframes and Costs with Nearshoring

Marc Andreessen recently said that “software is eating the world” in an essay he penned in the Wall Street Journal, and you’d be pushed hard to disagree with that statement.  As businesses strive to create even more innovative solutions to solve complex business problems, software is often at the core of this activity.

Writing quality software can be expensive to build. That said, you can reduce the cost and potentially the development timeframe of your software project by leveraging a nearshore business model.

In this blog post, we look at how the nearshore business model can benefit your business and why it’s something that you might want to consider.

Want the short version? Download our Software Development Outsourcing Guide!

Cutting Timeframes

Time, the most precious commodity for a lot of us, is no different in the software development process. Development practices such as Agile can help teams adapt to changes in requirements or resourcing challenges, but sometimes you just need to bring the extra resource to help get your software development project over the line.

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Writing quality software can be expensive to build. That said, you can reduce the cost and potentially the development timeframe of your software project by leveraging a nearshore business model. Click To Tweet

Timezone

While your initial thoughts may be to use an offshore team, this can sometimes have an adverse effect on timescales as you struggle to deal with conflicting timezone and culture differences.  Introducing a nearshore team, however, alleviates these risks however and can give your team the bandwidth they need.

A nearshore team will most likely be in a neighboring country or continent thereby ensuring that your business doesn’t have to wait overnight for email or instant messaging responses which helps you deliver your software project on time and can even reduce the overall timeframe of your project.

Due to the close proximity of your nearshore team, you’ll be able to pick up the phone or have video calls during regular business hours.  While timely communication isn’t impossible with an offshore team, it is just much more difficult.

Cultural Affinity and Language

Businesses that have traditionally offshored contracts to countries such as India have started to bring their business “closer to home,” and one of the main drivers for this is cultural differences.  With companies such as DHL, Siemens, and Lufthansa moving their big-data processing operations to the Czech Republic, for example, nearshoring is something that you may want to consider.

Your nearshore team will speak your language and share similar cultural values thereby making it easier for them to integrate with your existing business.  These aspects reduce the chances of misunderstandings throughout the software development process thereby ensuring your deadlines are met.

Highly Skilled Workforce

Having a highly skilled workforce is crucial when you’re delivering a software project, and with so many disciplines such as DBA and software engineers it pays to have the right people on the right job.

For example, in the past few decades, Costa Rica has invested money into healthcare and education and as of today, proudly boasts a literacy rate of 97%.  The talent pool consists of highly skilled software engineers and is one of the highest rate sources of talent in Latin America!

Engineers throughout Costa Rica are highly proficient with industry standard programming languages such as .NET and Java and as such, can help you augment your existing team’s capability thereby allowing you to deliver your software project quicker.

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Productivity

Your teams need to be productive to help give you the best chance of delivering your project.  With such a highly skilled workforce and minimal cultural differences, introducing a nearshore team to your existing business model gives you noticable gains in productivity.

Your nearshore team will integrate quickly and with minimum disruption, again helping your development team bring your software project to market quicker.

Want the short version? Download our Software Development Outsourcing Guide!

Cost Effectiveness

So, we’ve looked at some of the key points in terms of how introducing a nearshore team can help your business hit your software project delivery date.  Now it’s time to examine how a nearshore team can be a cost-effective solution for your business.

Lower Cost of Labor

Resourcing costs can be one of the biggest outgoings for any business. A nearshore team can help you manage this outgoing and in some instances, be more economical.

For example, as of March 2018, the average salary for .NET software engineer in San Jose, Costa Rica is CRC14,590,278 (or approximately $25,134).

Contrast this to a similar position in Phoenix, Arizona where the salary is currently sitting at around $76,298 and you can start to get an idea as to how economical it can be for your business to introduce a near team to your existing software development practice.

Resourcing costs can be one of the biggest outgoings for any business. A nearshore team can help you manage this outgoing and in some instances, be more economical. Click To Tweet

Less Ambiguity

Your nearshore team will be highly skilled, reside nearby and as such, will share similar cultural norms and values.  From a software development perspective, all of this helps the delivery process and serves to reduce the opportunities for ambiguity to creep into your project (and therefore cost!).

You won’t need to re-explain functional requirements and will be able to make a reasonable amount of assumptions as you collaborate with your nearshore team and share documentation with them.

Even if you’re struggling to relay or communicate specific use cases or stories during your project, given that your nearshore team is nearby, you have the option of booking a flight and getting there for a face to face meeting if it’s needed.

Less Rework

Less ambiguity translates into improved chances of success of your remote team “getting it right” the first time. This reduces the number of iterations your team must go through during each sprint, this can save your business valuable dollars!

Final points to consider

Finally, with so many benefits of nearshoring, you might be wondering if it’s too good to be true. That’s a valid question!  Some points you’ll want to consider prior to onboarding a nearshore team include:

  • Who owns the IP (intellectual property) of your software product when it’s built?
  • How are changing requirements handled?
  • Who are key points of contact?

You can alleviate these concerns by doing your research and due diligence when considering you’re your offshore team.  Alternatively, you might want to select a nearshoring partner to help you select, manage, and deliver your project.

 

Summary

In this blog post, we’ve explored how you can reduce software development timeframes by introducing a nearshore team to your existing business model.

We’ve also covered how lower costs of labor, similar time zone, and cultures make it easy for you to scale resource-on-demand, with minimal disruption to help drive economic efficiencies.

Here at Growth Acceleration Partners, we have extensive expertise in many verticals and are well positioned to offer the benefits of the nearshore business model and can manage the entire process for you.

Our Centers of Engineering Excellence (COEs) in Latin America focus on combining business acumen with top-notch expertise to help your business.  We can provide your organization with resources in the following areas:

  • software development for cloud and mobile applications
  • data analytics
  • data science
  • information systems
  • machine learning
  • predictive modeling
  • QA and QA Automation

If you’d like to find out more, then visit our website here.  Or if you’d prefer, why not arrange a call with us? You can catch us on email, too.

Want the short version? Download our Software Development Outsourcing Guide!