Mauricio Duran Oct 16, 2020 5 min read

Nearshore: How to Decrease Operative/IT Costs in 2020

There’s no denying the fact that businesses want to maximize their resources and execute their operations efficiently. That’s why they are always on the lookout for solutions that would help them reduce costs and thrive in competitive markets.

Software development outsourcing is one of the biggest industries, and service providers in this niche often use offshore, onshore, and nearshore models to get work done at competitive rates. Out of these three, outsourcing nearshore is the most effective one and for good reasons.

For starters, nearshore is relatively convenient, efficient, and cut costs significantly.

Let’s examine how outsourcing to nearshore services can help you reduce costs and achieve operational excellence.

Lower Labor Costs

Nearshore software development eliminates redundant resources that maximize your return on investment. It allows global talent acquisition without high expenditures.

Research shows that US companies can save their labor costs by 38% to 48% if they outsource their requirements to nearshore companies.

Reduced Travel Cost

Nearshoring facilitates in-person meetings, which improves collaboration and increases productivity. Then, it is easier to plan and organize conferences and eventually reduces costs. After all, its easier to catch a flight or even a train to the nearby location where your nearshore workers are situated.

Since the outsourced team is in closer geographic vicinity, you spend less time traveling and more time collaborating with co-workers. This all significantly cuts down on your additional expenses.

Increased Operational Efficiency

Outsourcing nearshore mitigates language barriers, which enhances communication and reduces misunderstandings within the team. Besides, it saves your company from productivity losses and costly errors caused by lags in communication or misinterpretations.

With nearshore connections, you don’t miss deadlines, respond promptly, and can deliver quality results on a project.

Cultural and language parity ensure seamless integration between your in-house resources and outsourced team and makes nearshoring the most appropriate option.

Moreover, you have greater control and influence of your projects as it enables the team to collaborate and communicate effectively in real-time.

Gain Competitive Advantage

With nearshore partners, innovative ideas and processes can expose your business to a disruptive outsourcing model. It involves cutting edge technology, such as automation in techniques that help you streamline business activities, saving you time and money.

Furthermore, disruptive advances give your business several growth opportunities by helping you adapt to new trends. You overcome technical obstacles and can rapidly bring innovations to the market.

Ensure Better IP Protection

Protecting your intellectual property is critical to software development. The alignment between your company and nearshore outsourcer makes it simpler to implement IP contracts and keep your software secured and protected.

Nearshore outsourcing enables the vendors to have strict enforcement in place and comply with IP contracts under similar standards and protect it from any such violation.

Protecting intellectual property is essential, and it becomes a whole lot easier when you outsource software development in the same country – saves you from breach of the property and other potential risks.

On the whole, the nearshore outsourcing model can significantly reduce the operating and IT costs that come with hiring in-house resources. You can access and utilize technical expertise and bridge the gap to facilitate an agile software development process – with smoother communication, minimized language barriers, and effective communication.

If you want help with your customized software development project and can’t find the right company to outsource to, click here to know how Definity First can solve your problem.

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Mauricio Duran

President at Definity First. I have a big passion for leading-edge technology and I'm a serial entrepreneur with more than 20 years of experience in software development. Expert in Microsoft technologies and mission critical applications.