Nearshore or Offshore, 8 Things to Consider When Outsourcing Software Development

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Worth well above $500 billion, the global software development industry is on a fast-tracked growth. More and more businesses are augmenting their operations, expanding their foothold, and leveraging the most advanced IoT solutions to become industry leaders.

As a startup or non-tech company, however, staying afloat in this cut-throat competition is daunting. At desperate times when you want to innovate and upscale, relying on outsourcing services is only the natural solution.

But what type of outsourcing service will best fit your needs? In the multi-billion dollar software and app development industry, choosing the right outsourcing service will be the determining factor for your product’s success.

So will you choose an outsourcing company based in Asia which is close to 10,000 km away, or you will rely on a South American software development company like Vates?

To help you reach a conclusion, we have compiled a list of eight things you should know prior to outsourcing. Read below to find out which outsourcing model is better for you.

What is Nearshore?

Nearshore software development refers to an outsourcing model that allows you to work with software development companies near your geographic location. As an American business, Vates is an ideal nearshore development firm that’s located in Argentina, in the south of America.

How it’s Different from Offshore Outsourcing?

Now one may think that nearshoring is just like any other outsourcing. However, nearshore is quite different that offshoring. Offshore outsourcing refers to outsourcing software development to developers that are located afar.

Earlier, China and India were considered the hubs for offshore outsourcing. However, businesses encumbered financial losses, unexpected delays, and scams when dealing with distant offshore companies.

Things to Consider When Outsourcing

So how to make the right pick between offshoring and nearshore outsourcing? Here are eight things you should know before making the decision.

Communication Barriers

You may not think it ahead but dealing with offshore companies often comes with communication limitations. You may hire a developer or company that doesn’t have English-speaking employees. And even though some speak the language fluently, understanding each other may not be easy.

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Real-Time Correspondence

Software development is a long and complicated process. During SDLC you may want to correspond with your offshore team in real-time to ensure that you have agile software development solutions. But doing so it’s not always possible due to the different time zones. On the other hand, hiring Vates can help you with timely correspondence due to similar working hours.

Geographical Limitations

Often during the software development cycle, businesses need to meet their developers’ teams. If you have hired an offshore development firm that’s located thousands of miles away, imagine the airfare and time you’ll have to spend. A single to and from trip will disrupt your schedule and finances.

Cost and Timelines

As discussed above, flying in and out to correspond with your offshore development company will not be easy. Naturally, the costs of commute, delays, correspondence challenges, and everything else will take a toll on you. Ultimately, your software development timelines will get affected too.

Corporate Culture

Offshore development firms have a different corporate culture than nearshore developers like Vates. Owing to the close proximity, similar language, and code of conduct, nearshore outsourcing will be less challenging to navigate through. Both the businesses can partner and enjoy a similar wavelength throughout the process.

Talent and Resources

One of the most common reasons for hiring nearshoring development companies is the abundance of talent and resources. Most American businesses are on the lookout for the tech industry’s top talent that Vates is able to acquire. Moreover, Argentina’s booming tech industry makes it all the more lucrative for American businesses to augment their resources from here.

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Testing and Protocols

In the world of software development, testing and quality assurance have become more important than ever. Businesses that seek to disrupt the market and carve a clientele for themselves cannot undermine software testing.

However, while outsourcing to offshore developers, you cannot be sure of their testing protocols and tools. This is because of different developers’ codes and a lack of awareness of the American software development market.

Post-Development Services

You may not realize it initially, but software development services are also required after marketing the product. You may need your software development company to upgrade the existing product, provide systems integration, or leverage data to further enhance your service.

While a nearshore service such as Vates will happily take on the challenge, offshore developers are often hard to get by for post-development services.

How to Find the Right Outsourcing Service?

Now that you know the various limitations of offshore development and the benefits of nearshore outsourcing, here’s how you can find the right service.

Do Your Homework

Learn what your competitors are doing, which nearshore outsourcing service is making waves, and how much are you willing to spend before marketing the product.

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Understand Your Requirements

You may need a different skillset, have a limited budget, or want an agile solution. Knowing your requirements will help you find the right vendor.

Vet a Few Companies

Don’t choose the first software development firm that comes on your SERP. Instead, thoroughly vet a few companies, learn about the outsourcing of the world’s top firms, and then make a pick.

Pick End-to-End Service

SDLC s more than just coding. You need a partner to help you with data analytics, software testing, system integration, and much more. Find a nearshore software development company that offers a wide range of services.

Sign a Contract

Once you have finalized, sign a contract with your development company to ensure the privacy and integrity of your data.

How Do We Help at Vates?

Vates is a leading South American software development company based in Argentina. We offer custom software development, IT consulting, software testing, and quality assurance services. Get in touch with us to learn about our customer base, services, and state-of-the-art labs. We also boast of our top ten percent global IT talent that you can hire through us.














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