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Three Reasons Why You Need NEARSHORING in 2019
June 12th, 2019
Businesses are in a state of the constant quest for ideas to increase their profits. For a while there, outsourcing building software products was a common thing in any business. While this approach can produce large profits, there’s an option that’s seldom missed: nearshoring. Nearshoring is a way of shifting the building part of software development, or other principal works, to countries that are right next to, or near, to a company’s main office.
For Germany, Netherlands, France, Italy, Spain, East Europe is a nearshoring region and corporations choose to outsource because of its information security laws. When using this, businesses shift processes or services to a nearby however much more affordable location, with almost the same timezone and only minor cultural differences.
For the US, the nearshoring area is Mexico. This provides an excellent opportunity to travel and manage personal meetings more often and much cheaper. You can also take extra control in protecting your business if you visit your team and keep the commanding spirit. Cultural adaptability decreases misunderstanding and helps the coordination of tasks.
When do you have to start wondering about nearshoring?
When you consider that the current team is not able to manage all the task and responsibilities, it appears only reasonable to hire more workers. However, normally, hiring an in-house team is more costly than businesses can afford. That’s why they prefer nearshoring. And this is one of the most popular approaches to software development in 2019. So let’s get down to it, and discuss why and how to nearshore software development.
Reason#1 Cost-effective
Let’s compare the costs of meeting a team outside the U.S. So let’s imagine that the company headquarters is in San Francisco and this company decided to nearshore their software development team. To visit the team they planned a trip for two people, for two days staying in the hotel (4 stars). They’re going to conduct personal meetings every quarter. So what about the price?
| Country | Round trip +hotel per quarter | Year Cost |
| Argentina | $2,675 | $10,700 |
| India | $3,110 | $12,440 |
| Mexico | $1,095 | $4,380 |
Flight costs American Airlines; Hotel costs Booking.com
So that’s why this year here at KitRUM, we decided to open a new office in Mexico City – a mucho grande hub for software development.
Reason#2 Protect from unforeseen circumstances
Some states around the globe that provide cheaper labor forces are in areas where natural calamities take place with some frequency. For instance, there are many tsunamis in Indonesia and travel across oceans can be dangerous. This can amount to significant financial risk.
Reason#3: Comfortable time-zone and geographic
The Time zone of Latin America to the United States gives a vital benefit over more remote places, such as Asia. For example, Mexico can offer real-time co-operation, which gives workers the advantage of working a regular business day. This advantage decreases the stress on the staff.
Time and territorial closeness also allow a much more co-op type. Discussion and team cooperation are performed much easier. Nearshoring provides opportunities of extension of your team, ready to communicate and operate collectively in real-time.
Conclusion
Nearshoring is an excellent idea to grow your business or modify your system with technology and innovations. With that said you have to do it carefully. Organize the timeline, do research, and ask the questions.
You need to:
- Have a definite and specific goal. Why do you need nearshoring and which part of tasks you will give for it?
- Set clear guidelines for picking an IT vendor.
- Favor a nearshore outsourcing partner with an exceptional status and reviews.
- Explain all technological and processual features of co-op before confirming the contract.
Finally, select carefully, and you will pick the best outsourcing company that will support your business growth.
Here at KitRUM, we help companies meet the best software development professionals. We know that each software engineer has different skills and expertise and we treat every client as a person with individual requirements and guidelines. If you need a project-based approach or dedicated team of software development or a few top-notch engineers – just contact us.
