Six most common questions on nearshoring answered

In recent years, more companies than ever before have opted for telecommuting.

Because of this trend, companies have realized the benefits of nearshoring, which greatly impacts how we work and the quality we deliver to all our long-term partners.

1. What is nearshore software development?

Nearshoring is a model of co-working and using different resources from an organisation in a nearby country with highly qualified people and teams. Typical nearshoring locations in Europe are Croatia, Serbia, Romania, and Bulgaria, among others. Outsourcing and co-working with organisations in countries further away, such as China, India, or the Philippines, is called offshoring. Nearshoring provides solutions for companies that want to outsource projects and business processes without the boundaries of traditional offshoring.

2. What are some of the benefits of nearshoring?

The most significant benefit of nearshoring is that it helps organisations in their sourcing as it’s easier to find the right professionals very fast. Apart from that, it helps organisations cut costs for outsourcing services and, in some cases, manufacturing. While offshoring was rather popular some years ago, this is slowly starting to change as more and more companies opt to nearshore their business to nearby countries. Offshoring can also pose different challenges in project management. The lead times can be longer due to the time zone differences, there are transportation logistics that can be very complex, and sometimes even hidden costs that companies don’t consider. In case you want to calculate the hidden costs of hiring an internal developer, Valcon’s calculator can help you.

Another benefit nearshoring has over offshoring is avoiding language barriers and cultural learning curves. Partnering with an IT provider closer to the primary office also brings down travel costs, which is rarely considered, making nearshoring a sound business strategy. Apart from that, geographical proximity is a significant benefit not only because of costs but also because of the same time zone. Companies have more control over the process, and everything is done without any delays, making overall communication much more straightforward.

3. What should one look for when choosing a nearshoring partner?

It is very challenging to share your vision and your business goals with an external partner, and that it’s why it’s important to always choose a nearshore company you can fully trust. The main things you need to consider before selecting the right nearshore team are the following:

The experience of the team

Most companies showcase examples of their previous work online, and they are also willing to demonstrate their expertise to attract new clients. In some cases, they cannot do so because confidentiality agreements are very common in the IT industry. This is why it’s essential to thoroughly explore the online portfolio of the nearshoring company you are interested in, read their case studies, and bear in mind that the projects showcased are just a portion of their experience. You will also be able to get in touch with the team and ask any questions you might have.

The team’s reviews

The most reliable references to get are client reviews of the nearshoring company in question. It’s possible to read different testimonials on the company’s website, but it’s also essential to check external sites specialising in collecting reviews from clients and comparing them. These reviews will provide you with a clearer idea of the business model of the nearshoring company in question and will help you evaluate the company’s skills and reputation.

Transparent communication

Most nearshoring companies nurture transparent communication, which is yet another benefit of such companies, and one of the things that should be considered prior to choosing. Nearshoring companies such as Valcon strive to give straightforward answers to the client’s questions and help them handle misunderstandings. It’s essential to find common ground with them and define a style that will benefit both sides.

Onsite presence

In the case of nearshoring, most companies will have a local representative to make sure everything runs smoothly. This means that, even if the whole team of professionals is located in a nearby country, the project will have a representative in the company’s native country, making sure everything runs smoothly. This is also due to the fact that the contracting preferably has to be done in a Western European country.

4. What problems can you solve with offshore and nearshore software development?

The practice of nearshoring is one of the hottest topics nowadays, especially when talking about software development. Although having in-house IT professionals has its benefits, more and more companies opt to nearshore their software development business to countries nearby. This happens due to several reasons, such as:

  • Allowing more frequent visits to the development/delivery site. In case a company wants to offshore its business, one of the benefits is the fact that the country where the IT professionals work is closer to home.
  • Closer proximity can lead to a reduction of cultural discrepancies and language barriers. Success is closely connected to an inclusive environment where external IT professionals are integrated into the company culture, which is easier when a company nearshores.
  • Time zone compatibility. This means they are often in the same or similar time zones, improving communication in the long run and ensuring delivery delays are avoided.
  • Better infrastructure quality. One of the benefits of nearshoring, and one that not many people talk about, is the fact that outsourced teams usually have better infrastructure than in other parts of the world. In order to ensure this, companies need to do careful research on what countries are best for them to nearshore their business to.

5. How long does it take to hire a nearshore development team?

In most cases, the length of the onboarding process depends on your nearshoring partner company. If the company has experience with this type of outsourcing and already has developers, the process will take less time.

Valcon has years of experience in nearshoring and a work-ready team of tech experts at any time, so we can provide you with a flexible team to meet your needs within a few weeks. In addition, thanks to our experience working with remote teams, we not only do our best to find the perfect match in the required skills but also the developers that fit into your company culture.

6. How much does it cost to hire a nearshore software development team?

Many factors influence pricing in nearshore software development. They may depend on the software developer’s seniority, technical skills, English proficiency, and geographic location. Nearshoring companies usually have predefined contracts based on hourly rates and materials. At the beginning of your partnership with your nearshoring company, you can sign a fixed-price contract that is usually project-based, so you know how much the entire project will cost from start to finish. Additional costs and work not covered by the initial contract will be billed separately.

In addition, the service provider may determine the price for the time worked (usually in hours) and the cost of materials used, such as hardware and software licences.

What can Valcon do for you?

Valcon is one of the leading technology, data and consulting companies in Europe, with offices in several countries. The nearshoring locations include Croatia, Bosnia and Serbia. With more and more companies and teams going remote, the quality and delivery of these teams must stay optimal. Remote working has been the norm for Valcon for a long time. This is why we can help your business by providing you with top-notch IT professionals who will be a part of your team and help you meet your business goals.

Want to learn more? If you would like to learn more about nearshoring and how Valcon can help your organisation, please email [email protected] and we’ll be in touch right away.

Other Valcon blogs on nearshoring

What should one look for when choosing a nearshoring partner?

What is nearshore software development?