What is Nearshore Software Outsourcing and How Can It Help Your Company?


The subject of “should I select onshore or offshore software development?” is fraught with debate and differing viewpoints. However, there is a third possibility in the range between those two: Nearshore outsourcing is becoming increasingly popular and popular around the world. In truth, when a small business or startup needs help with a software project, outsourcing is usually very nearby or very far away. It’s either a local friendly company or a company halfway around the world. We’ve learned a lot about both offshore and onshore software development, so let’s learn about nearshore software outsourcing and its value to organizations in this post.

‘Close’ Geography Saves the ‘Far-reaching’ Technological Gap with Nearshore Outsourcing

Nearshore development refers to outsourcing software development or some tasks to enterprises in your area – usually a neighboring country. If you’re working with a nearshore company, the distance between you and the contractor should be between one and three hours. This means that there is a little time difference and no hurdles to contacting a contractor.

By allowing employees to work in the same time zone, nearshore outsourcing allows businesses to easily grow their teams. Nearshore businesses frequently have similar, and often successful, language and cultural characteristics.

Even while Nearshore software development does not require a human connection, it does not necessarily necessitate face-to-face interactions. If it’s required to meet in person to discuss and exchange significant concerns, travel costs are typically modest, and businesses can travel to and from developers during working days. However, due to the current global condition of the COVID19 pandemic, which is currently tense in many territories/countries throughout the world with various variances and unforeseen threats, the problem of shipping expenses will be temporarily set aside.

Nearshore Software Outsourcing’s Top 6 Advantages

1. Moderate Costs

Outsourcing would be pointless if there were no cost savings to be had. Using a software business rather than recruiting someone inside saves money on acquisition, reduces HR costs, and spreads out additional costs (including non-IT costs). You must provide advice (which is a requirement for every project) when developing close-shoring software, but you do not have to break the project into multiple teams or assign priorities. Instead, your outsourcing firm can handle the majority of the work. A good nearshore software outsourcer should have a large, dedicated team.

2. There are fewer cultural conflicts.

Nearshore outsourcing can provide time zone parity. In a nutshell, it means that your time zones are nearly same. Alaska and Hawaii, for example, have four time zones each, for a total of six time zones in the mainland United States. This can cause logistical issues in some cases. It may be difficult to schedule meetings and receive timely responses/reports when software support providers are located on the other side of the world. Shared perspectives and cultural understanding, on the other hand, may be beneficial to you, and we may use this idea to develop the most effective communication plan with the provider.

Your outsourcing team is also extremely useful in delivering critical insights and feedback to organizations whose primary competencies are not software development, such as health, finance, and manufacturing firms, thanks to common ideas and cultural understanding. They rely heavily on their partner’s expertise and pay the greatest price if they do not receive it.

3. Integration time is reduced.

A team with similar cultures, a common language, and technical competence that allows the external team to quickly integrate into your existing team is one of the significant developments in nearshore software. Respect for a peer with an equivalent level of technical competence improved once the coordination and interaction improved, as did the rate at which internal and external resources created a companion company.

As a result, the knowledge transmission required to make your external team understand and adapt your procedures, as well as quickly update the information on your application, is simplified. Your external team may be able to give value sooner, boost your ROI, and ensure that your target dates are met by speeding up the embarkation and transfer of knowledge.

4. Improved infrastructure

Improved facilities are another benefit of nearshore outsourcing. You may be confident that the infrastructure is in place because several renowned nearshore locations have been built to meet your business demands. The choice of a partner in a country with a reliable internet and communication infrastructure ensures that your project will not be delayed due to unforeseen events. This may not be a question, but it is an important factor to consider when evaluating your options if your company outsources to other countries.

5. The time zones are same.

One thing seems simple but is not: time zone. Nearshore outsourcing has a number of advantages to offshore outsourcing, including the ability to work with your staff during regular business hours for those who manage an external team. This not only saves you from missing sleep or working on an odd schedule, but it also allows you to collaborate with your internal and external personnel. The majority of today’s development processes include daily constraints, and nearshore time zones make cooperating with a local partner simple and convenient.

6. Opportunity to Work with Promising Talents

Despite being on the same continent or territory, countries in the IT industry have vastly different levels of knowledge, skills, experience, and development potential. Large and small businesses recognized the costs and time required to recruit and retain talent (remote employees, relocations, and benefits). In fact, certain Southeast Asian countries, such as Vietnam and Malaysia, specialize in software outsourcing. Ineffective issue solutions have been taught in the most modern architecture and finest code skills. Furthermore, we have a team of nearshore outsourcing teams that are highly superior to other nations on the same continent, thanks to the State’s strategy of retaining and training young resources – excitement and desire.

Allow TESO to assist you!

TESO has had the honor of working with many corporate customers from around the world, including the United States, Canada, Germany, and countries/regions nearshore with Vietnam, such as Singapore, Hong Kong, and Japan, as one of the most prominent software outsourcing companies in Vietnam. TESO is expanding its range of services/products in Vietnam’s ‘hot’ industries as a result of these initiatives. e-Commerce, m-Commerce, banking, healthcare, logistics, and other fields…

TESO‘s capacity to achieve such wonderful things is also owing to a workforce of over 400 seasoned professionals that are proficient in a range of programming languages: PHP, Python, C & C++, JavaScript, C#, .NET, ASP.NET, AngularJS, NodeJS, and ReactJS, Ruby on Rails… As a result, the team is becoming stronger, and Tesosoft, as one of Vietnam’s top leaders in the IT industry for many years, is certain that it can meet the needs of large and small enterprises all over the world. To receive a free quote and consultation, please fill out the form below. But don’t forget about our new and exciting referral program.

Leave a Comment

Your email address will not be published.