Is Your Software Outsourcing Strategy Really Saving You Money?
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The driving force for most outsourcing decisions is cost reduction. The first impulse is to go to offshore locations on distant continents that are known for low operating costs and inexpensive labor. After all, today it is just as easy to send files and emails around the world as it is to send them around town. The allure of these lower costs often causes decision makers to overlook hidden costs that sap productivity and work against business goals. These problems are more likely to affect software projects. Nearshore software outsourcing is emerging as the ideal solution to reduce these pain points.

Do you need to outsource?

There are clear business cases beyond merely reducing costs that make nearshore outsourcing a viable alternative. You should be sure that at least one of these cases apply to your situation as you consider a move.

It is time to grow the business: Nearshoring is an effective way to get an important project underway quickly, slashing time from the development cycle and realizing the benefits of success faster.

Internal resources are already tied up on mission-critical work: Keep your employees focused on their current projects, while adding the benefits of new projects by outsourcing to nearshore locations.

Lack of expertise: Perhaps your project needs skillsets that are simply not present in your organization. Even if you are willing to hire, the right talent may not be available locally or you are unable to compete for their services. Engage with a nearshore software agency to put the right talent to work on your project immediately.

Why should you use nearshore software outsourcing for your project?

The benefits of a nearshore location for your software project center around smaller differences in time zones and closer cultural similarities.

Ease of communication is essential to modern software development. It is important that all stakeholders are able to communicate in real time during normal business hours. India is 10 hours ahead of US Eastern time, while China is 13 hours ahead. How many of your managers are going to want to schedule regular 1am phone conferences to keep tabs on a project? Compare this to Uruguay, which is only 2 hours ahead. There are many overlapping hours during the normal workday and no lives have to be disrupted to keep the project running smoothly.

This ability for real-time communication makes nearshore software agencies the logical partner in agile development methodologies. All team members, no matter their location, can participate in daily scrum sessions via teleconference without disrupting their workday.

If face-to-face meetings are needed or required, travel costs to an offshore site on another continent can quickly eat away at any savings in operational costs. A nearshore location reduces these costs substantially. Overall, the costs of poor communication, lowered productivity, and travel to distant locations can boost the cost of a project by 200 to 300 percent when offshore locations are used. Nearshore locations reduce or eliminate these hidden or overlooked costs.

Nearshore agencies are also more likely to share cultural similarities. There are fewer language barriers. Engineers at a nearshore agency are more likely to be able to use their expertise to share alternative ideas in a collaborative way that could improve the project. Nearshore countries are more likely to provide better protection of intellectual property. Legal frameworks and industrial standards are likely to be more similar.

What to look for in your nearshore agency

Here are a few tips as you look for a good fit when outsourcing to a nearshore software agency. As you will see, many of these factors are enhanced by the closer time zone and cultural similarities of a nearshore location.

Understanding your goals and your problems: Closer cultures will have similar goals and will be able to see problems, and thus craft solutions, with a similar mindset. When language barriers are not a problem, goals, expectations, and planning will be more efficient and lead to better results.

Maximize the user experience: The user experience is the foundation of a successful software project. The agency you choose must value the user experience highly. An agency that shares cultural similarities will be able to create this experience easily and make it more genuine

Agile development practices: Agile methodologies allow you to cut development costs and get to market faster. You will be much more able to engage in agile practices with a nearshore agency.

As you consider all of these factors you will see that nearshore software outsourcing will bring you a better result at a lower total cost and faster time to market.

To Know More about Nearshore development company visit us

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