October 20, 2020 Vladyslav Kyrychenko

How to Understand and Apply Nearshore Outsourcing to Your Business

Businesses are always in search of talents – no matter how far they may live. And this is the case when nearshore outsourcing can come into place. So, if you need the best service, use these recommendations from Lemapp experts and find a top specialist in the easiest way possible.

Why nearshoring appeared as an outsourcing model? In fact, globalization was the case. The closer world becomes, the easier interchange of technologies in it happens. This situation caused the appearance of offshore outsourcing, which enables the sending of IT-related projects abroad. However, along with numerous benefits, it created significant challenges. Among them, you may see the problems in terms of management, culture, and distance. To prevent these difficulties from interfering with your business, ensure your approach to involving nearshore outsourcing us wise. To help you with this, Leamapp experts are eager to share our experience in adopting this model with you.

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In a nutshell, this term means shifting operations connected with software development and routine business process to a company situated in a neighboring country. With this decision, the initiator gets better control over expenditures and remains convenient with cultural closeness, distance convenience, and common language. Moreover, companies become attracted to the idea of cutting distances and reducing the discomfort of the time zone variations. As another option, they can relocate work within their country, still saving expenses and resources for more prioritized tasks in-house.

For example, Lemapp becomes a nearshore provider for companies from Western Europe or the Middle East. At the same time, it cannot be a nearshore partner for Australian and Canadian vendors. 

Offshore Model

The main goal of offshore development is saving costs on paying salaries for the best experts or expensive specialists abroad. By appropriately addressing, the remote team can deliver you a faster and more cost-effective top service than in-house. 

Therefore, expenditure effectiveness and quality standards are determining factors in choosing an offshore company. For example, the USA can effectively collaborate with Hungarian partners, while companies in France frequently choose Mexico for offshoring.

Nearshore Model

For nearshore outsourcing, the proximity of location and language is a must. The cooperation pairs will change: the USA can outsource to Mexico, and French companies work with Lemapp on this basis. This geographical proximity enables choosing a dedicated development team to manage the overall project, engage your team, and cut time on reacting to typical operations.

What to choose: Offshore or Nearshore Model? 

To choose between nearshore and offshore outsourcing wisely, consider the level of sophistication of your project. 

For simple work that is easy to process and deliver, the offshore model is a fair choice – as an employer, won’t risk the problems of time and distance. Moreover, it is a good choice if you have budget constraints. If your project is large and complex, choose nearshore to eliminate the unnecessary risks. Also, it’s a good choice for expanding in-house processes.

Notwithstanding, you should always ensure that the quality delivered is good. Otherwise, all these advantages will be devalued.

6 Advantages of Choosing Nearshoring for Your Business

  1. Location proximity

If the project lifecycle needs meetings in person, the nearshore model is a fair compromise for outsourcing. To cut the travel expenses, find a business partner in a nearby country. However, make sure there are direct flights between your central office and nearshore software development companies of your choice. Otherwise, you may cause yourself extra trouble.  

  1. Time-zone comfort

Instead of offshoring, the nearshore model enables working with a foreign country in the same time-zone. As a result, you will know that effective communication within your working hours is always available. With the difference in a couple of hours, your window of comfortable negotiations is broad enough to discuss all the key questions daily. 

  1. Cuts on expenses

While negotiated instantly, nearshore outsourcing strengthens the advantages of a remote team hiring even more. Your developers abroad can waste significant time in responding, task managing, analysis, and re-doing the job. In addition to cutting costs on communication, you can travel to your partner easily and cheaply. 

  1. Closeness in cultural and language terms

Nearshoring facilitates cooperation and communication, thanks to cultural and language similarities. With this common ground, the negotiations with your partner abroad go smoothly. Even if you both share good English proficiency, speaking in the native language is always more comfortable. 

In addition, you will share holidays and weekends, which won’t cause significant pauses and delays in your cooperation on the project.

  1. Compensation of staff shortages

If you face difficulties in finding talents locally, hiring a nearshore software development company is always a great idea. If you refer to Lemapp, you can be sure that our specialists will supplement your team is a true expert. Our people are used to working in a project, being both professional and flexible to adjust to changing circumstances and quality standards.

Besides, the speed and ease of nearshore outsourcing is supplemented with common language and culture.

  1. Optimization of your team’s effectiveness 

While working with a complex product, you can break this process into stages and outsource some of its parts to your nearshore partner. Thus, this model helps you rearrange your in-house team with key tasks. Together with these sub-teams, your large project will be delivered faster and easier to control.

Important Things to Consider about Nearshore Outsourcing

While choosing a nearshore partner, be wise in taking time to find a good company. Pay attention to the country of origin, as it can tell a lot. Lemapp works in Ukraine, which is a developing economy with highly educated and ambitious youth. As a result, the average level of professionalism within our company is reliable for our clients. 

Also, check the legal conditions and the safety of the intellectual property. Everything matters: the overall economic situation, the durability of experience, and the technological enhancement. Lemapp checks everything about this too. We are a go-to team as your nearshore outsourcing partner that guarantees success for your company. With constant training for IT specialists and their readiness to cooperate, Lemapp becomes attractive for clients from Western Europe.

Thus, if you’re about to choose Ukrainian partner under the nearshore model, this guide can help you.

What are your advantages while choosing a nearshore company?

The nearshore model offers several pros in terms of proximity and comfort we’ve already mentioned. But are they enough to convince you to choose it for your company?

Nearshore company will take on itself extra workload and readily take the delegated tasks from your projects. Moreover, you can enjoy the savings on salaries for its services, deliver the hardest job, and complete routine operations. Meanwhile, your in-house specialists can concentrate on more critical tasks.

At the same time, the great thing about nearshoring is that you maintain control over the situation. Expect from your partner readiness to answer instantly and in-depth market analysis. Besides, time-zone proximity should assist in the speed of business processes. All this will work with a company that is from a neighboring country.

In short, nearshoring is advantageous for any company, as it helps to increase quality and motivate your workers to do more important and enjoyable tasks. Moreover, this is the most comfortable outsourcing model, as it helps you to remain alert and flexible to your cultural, language, and working specifics.

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