The outsourcing model has taken the online business industry by storm.
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It is not just a beneficial weapon that business owners use to realize their business idea while gaining profit, but has become a must for online businesses. But as the method of outsourcing has become complex and there are various sub-models emerging as of late, it makes the decision of choosing which outsourcing model is best suited for your business more complicated than it used to be.
One of that would entail nearshore outsourcing. This is somewhat different from the traditional offshore outsourcing services wherein the tasks are sent out to an overseas provider, mostly located in India, China, or the Philippines. In terms of nearshore outsourcing, or shortly known as nearshoring, the businesses processes or tasks are relegated to a foreign country, although closer in geographic proximity from the client’s mother country and still availing of low labor costs.
Nearshore software development is one of the most common type of service being outsourced to software companies near me. The idea of nearshoring develops from the need of the clients to reduce complexity in handling the tasks with the hopes of significantly improving the productivity level within the business scheme. According to some critics of offshore outsourcing, the remoteness between the client and the service provider is creating some risks into the quality of the services being provided and the communication pattern between both parties.
The idea to opt for nearshore software development has also emerged after the expansion of outsourcing services from well known locations have gradually resulted to a decrease in quality of services being provided and a high turnover rate. The IT companies are now looking at nearshore software development to keep the outsourced work closer to home for better maintenance of IT services and on-time delivery of tasks.
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But how does nearshore software development makes sense?
Here are some reasons why businesses believe that nearshore software development is a smart strategic decision for them:
Time Zone Advantage
Although offshore outsourcing has its own time zone advantage that will benefit clients who avail of outsourcing services, there is also some time zone benefits with nearshore software development. This type of service is a creative process that often requires client and service provider to stay in constant interaction with one another.
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The proximity of the location indicates that you can work at nearly the same time during the day, without the need to stay up late or wake up early to get the task done. You can also work at the most productive times of the day to ensure that you can get tasks done efficiently.
Cultural Compatibility
Clients opting to outsource their IT projects prefer nearshore software development due to the closeness in cultural affinity. The language is the most notable reason for this such that there are no adjustments needed or training to ensure that you can communicate effectively with one another. Other similar elements that would affect your ability to directly communicate with one another is the similarity in cultural history and standard of education.
Intellectual Property Protection
The EU legislation offers intellectual property rights protection to ensure that sensitive proprietary information that is related to your business will get optimum protection. It will also give you the confidence with nearshore business engagements that this particular legislation will apply.
Technical Skills Advantage
Most countries in Europe or in the West are known for their high level of technical and scientific knowledge. Thus, opting to outsource nearshore software development will give you the assurance that the staff is skilled and well-versed with IT knowledge, along with other related technical requirements. The government is also dedicated to strengthening the IT industry to introduce competitive and highly skilled labor force into the market.
Costs Benefits
All of the above factors listed contribute to a growing amount of cost savings that a business owner could avail of. You can still avail of a low-wage cost with nearshore services, although there is no need to perform extra work that could come as a result of time zone differences. Given the ability for software development services to work closely together with on-site staffs and offer high standard services on time, it would translate to increased productivity for your business and in turn deliver more profits.
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