Nearshoring Software Development - A Few Tips for Success

As we outlined in previous posts, while offshoring has lost some of its value and fewer companies opt for traditional offshore destinations, nearshoring provides a cost-effective, safe and, often superior alternative.

Just to refresh, nearshoring software development refers to when a company outsources software development work to closer countries, with the benefit of being in the same time zones as well as having cultural affinities and quality control advantages. Evaluated correctly, nearshoring can reduce the time and costs of any software or application project, in these cases, there are numerous best practices to ensure a successful partnership. Let's mention the main ones:

Success Tip #1 - Get a working process, but be pragmatic

A successful software development project requires to have some sort of systematic process to follow and support your goals. However, you must be practical. Waterfall model, agile model or Scrum are all useful in different contexts for different software projects. What do I mean? Basically that there is no single silver bullet for all projects. In summary, team's goal should not be to invest time and money embracing any strict methodology, but finding the best way to adapt practices that enable effective communication, teamwork and efficiency.

Success Tip #2 - Find the best talent and hire them

Nearshoring can provide talent that would not otherwise be available in the American market at an affordable cost. Due to the cultural similarities between the U.S. and nearshore locations, this is much easier to find than with offshore locations. Hiring a nearshore software development provider can make the hiring process even easier by vetting developer’s skill set beforehand and providing a stable environment with readily available turnkey senior talent.

Success Tip #3 - Set clear milestones. Be realistic

When everyone on a project is clear of what needs to be done from the beginning, teams can finish tasks quickly and efficiently. So, making sure that you have a very clear scope of any project is essential. You must start with a clearly defined and realistic goal from the beginning. Also set realistic budgets.

Success Tip #4 - Full communication

Communication is the most vital part of software development. Unlike offshore development, nearshore locations are closer and available in real time when you need them. Just take advantage of this and promote clear practices of communication for team members to reduce misunderstandings and mishaps. In addition, it is fundamental that the entire team collaborates to make sure all your projects are well documented. It will not only help to trace steps back if something goes awry, but it’s great for reviewing how you have dealt with similar issues in the past.

Success Tip #5 - Base decisions on more than just cost

Cost is a major factor in many outsourcing decisions, but do not select the lowest bidder just because. Sometimes, choosing the least expensive vendor can affect adversely. When evaluating estimates, eliminate the highest and lowest proposals and search a combination of price and quality.

Of course these tips won’t necessarily guarantee your success but, while depending on the company or kind of project, there may be additional considerations, when it comes to outsourcing software development it is advisable to take them in mind. Don’t hesitate to call us and ask any questions.

Ariel Sztern

About Ariel Sztern

Ariel is a Software Engineer with more than 20 years of experience in Software Development with experience in managing projects in more than 16 countries

Nowadays Ariel is responsible for managing the operation in USA as President of TISA Software LLC.

Beyond his technical knowledge and passion for the technology Ariel enjoys watching the NBA and playing Ping-Pong, he also like sci-fi movies and was recognized as one of the 40 under 40 by the Houston Business Journal in 2014.


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