Nearshore Software Development10 min read
It can not be denied that at some point, almost every business outsources some portion of the information technology functions, whether it’s a small business outsourcing its UI/UX design or a large company outsourcing its entire IT operations.
Outsourcing software development has many advantages, including cost reduction, improved efficiency, mitigated risk, and enhanced security. However, it can have its drawbacks when the time difference can affect the whole of your company’s business goal. Therefore, the search for a proper solution has begun.
Nearshore software development can be the perfect answer when it is becoming more popular among customers who want to receive high-quality results from software engineers in countries within a small-time difference.
Let’s explain the concept of nearshore software development!
What Is Nearshore Software Development?
Straightforward and easy to understand, the term ‘nearshore’ from ‘nearshore software development’ refers to the geographical location of the outsourced resource.
Nearshore software development is an outsourcing model focusing on accessing resources within proximity of the company doing the outsourcing. The outsourced aid is still based abroad but in a country in relative geographic proximity to the client organization, often within a 1-to-3-hour time difference.
As long as work happens in the same time zone, the schedule is easier to synchronize. Face-to-face meetings and other daily interactions may quickly meet after only a short travel period.
For example, in an Asian context, nearshore software development refers to using developers based in mainly Asian countries like Singapore, Vietnam, the Philippines, …
The Future Of The Nearshore Outsourcing Model
The world might be at a standstill right now, but many businesses are working harder than ever to innovate and survive the future economic fallout of COVID-19, a necessity that some companies are finding much easier to meet with the help of their nearshore software development partners.
Statista – a well-known forecast and statistics site – has estimated that global IT outsourcing services revenue is expected to rise from $378.1 billion in 2018 to $413.7 billion in the next few years. That’s a $35 billion increase in just a course of 2 years, almost a $17.5 billion addition each year. They note that nearshore services represent 36% to 40% of the global services market.
Following the article “Top 6 IT Outsourcing Trends and Market Overview for Business” at digitaljournal.com, higher demand for nearshore outsourcing is dramatically increasing, while the cooperation with onshore houses is decreasing. On the other hand, the most demanded sectors for complex, innovative solutions associated with AI, blockchain, IoT, this option is becoming especially preferable for many organizations across the globe.
The data above shows that the future of nearshore outsourcing seems rather exciting for both the clients and the outsourcers. Nearshoring is the perfect balance between onshoring and offshoring. While it may be challenging to engage in strategic planning right now, many companies are taking action and performing scenario planning to see how they can prepare for or contribute to the pandemic world's recovery phase.
Developing software is one of the best ways to keep things running in the Coronavirus era, which is why nearshore development partners are assisting businesses in rising to the challenge.
The Core Benefits Of Nearshore Software Development Service
Nearshore outsourcing offers client organizations several strategic advantages. Some advantages apply to outsourcing generally, while others are more specific to nearshore outsourcing destinations.
Time zone compatibility
The most important aspect of nearshore outsourcing is shared time zones. The time zones are essential because the work can be reviewed, approved, and amended much more quickly. Besides that, operations in similar time zones make it much easier to ensure smooth communication between outsourced specialists and the client organization's employees.
The 2017 Global Software Services Report shows that 12% of software development projects fail because of inadequate communication. Some clients' projects require the physical presence of the contractor, so they need to work directly with a team of software engineers. Nearshore outsourcing allows outsourced specialists to spend time onsite with the client organization for effective collaboration and smooth communication at some specific points.
In some circumstances, the contractors can bring nearshoring specialists who can be team leaders or project managers onsite for critical issues in a project's life cycle, which could be a significant plus to the client. On the other hand, it is also appropriate for employees of the client organization to visit nearby destinations if they wish to.
Nearshore outsourcing will help the client organization save more money by reducing operating costs. A team of nearshore software developers from nearby developing countries will be much more cost-effective regarding wages, equipment, and facilities than a team of similar talent far away.
Another nearshore software benefit is offering a relatively closely aligned culture between the client organization and the nearshore outsourcer. Because the culture is similar enough that many employees are familiar with, it makes it much easier to understand how people want to be treated, which will help to improve customer satisfaction rates.
Quality Industry Experience
Based on data from the Global Skills Index 2020 report published by Coursera, Vietnam's technology skills ranked second in the Asia Pacific and 22nd globally. So clients can believe in the quality of potential candidates to suit their needs.
Why Partner Up With Groove Technology?
Our innovative software development services can assist small and medium-sized organizations to optimize their resources, finances, and delivery processes to stay competitive in the digital age. Customers are at the center of a collaborative culture that respects them and has a rigid selection procedure. These are the main differentiators at the heart of our business.
With expertise and experience in various industries, including education, e-commerce, supply chain, logistics and transportation, gambling, and more, we have assisted hundreds of businesses in implementing software development projects in Vietnam's tech cluster.
Even compared to Asian countries like Singapore or China, our hourly rates are far lower than in Europe. Furthermore, Groove Technology's outsourced software development services eliminate the additional costs of infrastructure, office space, personnel, and training.
Quality & Time
We dedicate to keeping you informed about the development and quality of your project. In the digital age, a high-quality product launched at the right moment is a huge competitive advantage for firms.
We are realistic and recognize that there is no one-size-fits-all development process. We will work with you to modify your approach as much as possible, and we will continue to make suggestions to help you enhance your performance and refine your work procedures. You can use our established QA methods to modify your development workflow, or we can adapt your processes and tailor them to remote participation with complete flexibility.
Access skilled people and hire faster
Our objective is to solve your issues by obtaining the right talent for your requirements. We have a team of professionals at our disposal, and we can even assist you in connecting with a global network of specialists.
IP Protection and Data Security
To ensure business continuity, minimize business disruption by preventing and mitigating the impact of security incidents, and ensure that all information controls are implemented to a repeatable and consistently high standard at the right time and at the correct cost for the benefit of our customers and stakeholders. Groove Technology has decided to implement an ISO 27001: 2013 compliant Information Security Management System (ISMS).
Our workflow and expertise have been fine-tuned and constantly examined, and enhanced through time. We give you the best product, from UX/UI design to the working environment and job performance, through a process of exchange and consultation. Ensure that everything is being enhanced regularly to suit the demands.
Node JS Engineers
Node.js is an open-source server environment that runs on various operating systems, including Windows, Linux, Unix, Mac OS X, and others. Our Node.js experts will take advantage of the incredible benefits of Node.js, including ease of sharing and scaling, speed, support tools, reusable code, and more.
React Native Engineers
Excellent developer tools, virtual DOM, and reusable components… These are some of the features that come to mind when people discuss React as a well-known name in web development. Groove Technology's React engineers have assisted many customers in digitizing their businesses through apps such as Food Delivery Apps, Online Grocery, SAAS-based management platforms, and others.
Python is popular among programmers due to its increased productivity and high-level built-in data structures, dynamic typing, and binding. When you use Groove Technology's team enhancement service, you'll be working with a team with experience in custom software development and mobile app development.
.NET is also an open-source and cross-platform development platform that can create a wide variety of applications. Groove Technology's.NET team enhancement service allows you to develop for the web, tablet, desktop, games, and IoT using a variety of editors and libraries. Groove Technology uses .NET in building Job Portal, management platforms, SAAS-based supply chains, and other applications because it provides numerous benefits, such as easier deployment, less coding, and legacy system integration.
We've established a culture in which our managers can connect with our clients and get the best of ourselves to your company. Our culture is what drives – and more importantly, what pushes – your success.
Idea & Conceptualization
We work collaboratively with our clients to put their ideas on paper and transform them into viable concepts.
A set of Services of Usability Consulting, UX, and UI Design, applicable to all industries, ranging from mobile and web to PC, is provided by highly specialized skills. Our engineers assist customers in achieving satisfaction while maintaining product quality.
To validate the project's technology and budget. To minimize the risks phase of the software development cycle, we perform Feasibility Analysis, Proof of Concept, Prototypes, and User Testing on your product ideas.
Qualified consulting services, business methodologies, and application and process management tools are available. We guarantee full consulting throughout the product's life cycle.
Our solid architectures will guide our clients' projects to reliable and successful delivery. Groove Technology's multi-paradigm approach allows it to design solutions more quickly and efficiently for projects of variable size while still easily converting and applying supporting tools.
Among testing outsourcing companies, we have unrivaled experience. Our knowledge bank of iterative processes serves as the foundation for our full range of software testing services, allowing us to assist our customers in developing software products in a timely, dependable, and effective manner.
How To Pick An Appropriate Nearshore Software Team?
With the rapid changes in technology, the world is changing at a breakneck pace. As a result, many businesses are forced to delegate projects to nearshore outsourcing partners.
Picking the right nearshore development partner is crucial because many software development projects are lengthy. Furthermore, any software must be continuously maintained and updated with new features regularly.
We recommend the following three steps to assist you in selecting the best nearshore outsourcing team for your needs:
Examine Your Organization's Capabilities
Before you outsource software development, you should understand your internal team's capabilities. A staff survey is one of the most effective ways to assess your team's expertise. The results will give you a good idea of your team's strengths.
Following creating a project specification, the next step is to compile a shortlist of nearshore candidates with the specific skills you require. Send your project specifications to each company and ask for a breakdown of how they'd approach the project. You can then choose to work with a company whose workflow processes appear to be a good fit for your needs.
Check Your Shortlist's Expertise
Before committing to employing a software development company, do your homework and make sure they can back up their claim of expertise. You should consult their website and read their research studies as your first point of contact. You may also want to contact companies with whom they have previously worked to confirm the quality of their work.
You should then double-check their market reputation by reading reviews on third-party websites and following them on social media.
Implement Project Management Methodologies
Project management software is essential for organizing and tracking the progress of your nearshore project. The use of tools such as Basecamp, Jira, and Trello improves overall communication with your development partners and ensures that milestones are met. A well-organized workflow is essential. Project managers and team leaders should be assigned to ensure that tasks are completed on time and that individual responsibilities meet.
1/What is nearshore software development?
The term “nearshore software development” refers to the practice of outsourcing a project (or a portion of a project) and specific tasks to firms in your region – in a neighboring country. If you hire a nearshore company, the distance between you and the contractor should be between 1 and 3 hours.
2/ What is the difference between nearshore, offshore, and onshore outsourcing?
- Nearshore refers to outsourcing to countries located in close proximity with similar time zones
Offshore refers to outsourcing to far-away countries with considerable time zone differences
Onshore refers to outsourcing to service providers located in the same country.
3/ What are the benefits of nearshore software development services?
Having a team with a similar culture and with whom you can communicate in real-time makes the development process go more smoothly and the development cycles shorter. Deliverables will always follow the customer's needs, and interactions and iterations will naturally extend the company’s teams.
Do you have any questions? Contact us now for a thorough consultation and start your journey together!