What is Nearshore Software Outsourcing & Its Efficiency to Your Business


There are many controversies and opinions surrounding the question "should I choose Onshore or Offshore software development". However, another option lies in the range between those two options: Nearshore outsourcing, which is also increasingly interesting and widely grown in the world. When a small enterprise or startup seeks support with its desired software project; then, software development outsourcing is generally extremely local or distant. It's either a nearby friendly business or a firm halfway over the world.

As we have known a lot about Offshore software development as well as Onshore software development, in this article, let's learn about nearshore software outsourcing and its efficiency to businesses.

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

Nearshore development means that you give companies in your area - a nearby country - the development of software or certain responsibilities. If you are using a nearshore firm, the distance between you and the contractor should be 1 to 3 hours. This implies you have a little difference in time and no obstacles to reaching a contractor.

Nearshore allows enterprises to increase their teams efficiently by providing employees with easy access to the same time zone. Nearshore companies usually share comparable, often successful language and cultural features.

However, even while software development on Nearshore requires no personal connection, it does not always require face-to-face meetings if necessary. If it is necessary to meet in person to discuss and exchange important issues, travel expenditures are generally low and businesses may travel during working days to and from developers. But temporarily putting the issue of transportation costs aside, due to the current situation of the COVID-19 pandemic worldwide, which is still tense in many territories/countries around the world with many variations and unpredictable dangers.

Top 6 Benefits of Nearshore Software 

  1. Costs Moderated

Naturally, if there were no reductions in expenses there would be no sense in outsourcing. Using a software company rather than hiring it internally saves acquisition costs, decreases HR costs, and distributes additional expenditures (including non-IT costs). The creation of close-shoring software implies you provide guidance (which is a requirement for every project), but you do not necessarily have to split the project over several teams and provide priorities. Instead, your software company can undertake the majority. A competent outsourcer of nearshore software should have a substantial, focused staff.

  1. Less Cultural Conflicts

Nearshore can give parity of time zone. In short, it indicates that you have almost comparable time zones. For instance, particularly in the continental United States, there are four time zones in Alaska and Hawaii, and there are six in total. This can sometimes generate logistical problems. Perhaps it is tough to set up meetings and receive responses/ reports promptly by including suppliers of software support situated on the other side of the world. However, shared viewpoints and cultural understanding might also benefit you, and we can look at this idea to create the smartest communication strategy with the provider.

And thanks to shared viewpoints and cultural understanding, your team is highly helpful in providing important insights and feedback to corporations whose main skills do not include software development, including health, finance, and manufacturing companies. They rely significantly on their partner's knowledge and pay the highest price without that advice.

  1. Faster integration

It can be said that one of the major developments in nearshore software is a team with similar cultures, a common language, and technical competence that allows the external team to integrate easily into your existing team. Once the coordination and interaction improved, respect for a peer with an equivalent degree of technical knowledge is the pace at which internal and external resources create a companion company.

In response, this simplifies the transmission of knowledge necessary to make your external team understand and adapt your procedures and swiftly update the information on your application. By speeding up the embarkation and transfer of knowledge, your external team may begin to provide value at an early stage, improve your ROI, and secure fulfillment of your target dates.

  1. Improved facilities

Another advantage of nearshore is improved facilities. With several renowned nearshore places being designed to fit your business needs, you can be confident that the infrastructure is in place. The selection of a partner in a nation with stable internet and communication infrastructure guarantees that because of unforeseen circumstances, your project is not put off. This may not be a question, but it is a crucial component to assess your selection depending on whether your company outsources abroad.

  1. Same time-zone

One thing seems simple but is not: time zone. Compared to offshore outsourcing, an important benefit of nearshore is to be able to work with your team during regular business hours for those who manage an external team. This not only saves you from losing your sleep or working on a strange schedule but also opens up cooperation between your internal growth and your external employees. Daily restrictions are a key part of most of today's development process, and nearshore time zones make collaborating with a local partner easy and convenient.

  1. Opportunity to Work with Promising Talents

Although located on the same continent or territory, the difference in knowledge, skills, experience, and development potential in the IT industry is not the same between countries. Large and small companies saw the expenses and the amount of time that talent has to be spent (remote employees, relocations, benefits) to gain this talent. In fact, in some Southeast Asian countries for software outsourcing like Vietnam, Malaysia… The talents have been taught the most contemporary architecture and the finest coding techniques for ineffective issue solutions. In addition, thanks to the State's policy of maintaining and training young resources - enthusiasm, and passion, we have a team of nearshore teams that are extremely superior to other countries on the same continent.

Let Saigon Technology Support You!

As one of the most prominent software outsourcing companies in VietnamSaigon Technology has had the honor of working with many corporate customers from around the world, including the United States, Canada, Germany… and countries/regions nearshore Vietnam such as Singapore, Hong Kong, and Australia. Through these initiatives, Saigon Technology is extending its range of services/products in Vietnam's 'hot' industries. e-Commerce, m-Commerce, banking, healthcare, logistics, and so on...

Saigon Technology's ability to achieve such amazing things is also due to a staff of over 400 seasoned professionals that are skilled in a variety of programming languages: PHP, Python, Java, C#, .NET, ASP.NET, AngularJS, NodeJS, and ReactJS, Ruby on Rails… As a result, the team is getting stronger, and Saigon Technology, as one of the top leaders in Vietnam's IT industry for many years, is certain that it can meet the expectations of large and small businesses throughout the world.

Contact us via this box to earn a complimentary quotation and consultation! Yet don’t forget our latest appealing referral program.

  • As a leading Vietnam software development outsourcing company, at Saigon Technology, we dedicate ourselves to your success by following our philosophy: Your success is our mission.
Content Manager

Thanh (Bruce) Pham CEO of Saigon Technology

A Member of Forbes Technology Council

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