April 5, 2022

What Are the Advantages of Nearshore Software Development Outsourcing?

By Monika Mueller

More companies are outsourcing software development these days, and the trend is only getting stronger. Why? Top developers and engineers are difficult to find, thanks to an enduring IT labor shortage. Outsourcing allows companies to quickly fill skills gaps and supplement their internal teams with specialized skill sets when needed — on demand.

Cost savings are another key benefit, as is the ability to ramp up and down quickly and extend production schedules to complete projects faster. Continuity and turnover remain a concern in the current landscape, due to everything from the pandemic and unpredictable geopolitical events to in-demand talent with high attrition rates. Outsourcing can ensure continuity to significantly limit these types of risks.

But why are more companies turning to nearshore outsourcing? From time-zone alignment to cultural compatibility and the ability to successfully incorporate Agile methodology, there are numerous benefits to having your team in closer proximity. Here are a few of the main advantages to working with nearshore software development teams.

Time-Zone Alignment

When teams work together for the bulk of the day, collaboration is facilitated and knowledge ramp-up is much faster. Coordinating phone calls, meetings and even real-time communication via chats and emails is simply a non-issue when time zones are closely aligned. Not only does this allow for streamlined integration and more efficient production, it makes it easier to build rapport and create a strong sense of community.

From a practical perspective, being in similar time zones also takes a significant burden off of your organization. When time zones are aligned, there’s no need to manage teams 24/7 due to time differences, which means no inconvenient late-night or early morning calls or meetings. Working within “normal” business hours reduces the stress associated with a high-alert, around-the-clock mindset.

Facilitating Agile Software Development

Time zone alignment is becoming a key concern as more companies move toward Agile methodology, which relies on cross-functional collaboration. Close collaboration is key to working in an Agile environment — the whole point is that teams work together as opposed to siloed environments. An overlap in work hours is a must for this type of development to be a success.

The benefits of Agile software development run the gamut, from increased transparency and a faster development process to predictable costs and scheduling. These factors are key to a successful outsourcing partnership, and are only made easier when you partner with a nearshore team.

Cultural Compatibility

Cultural alignment and relatability go a long way toward facilitating collaboration and fostering teamwork. Most nearshore teams speak fluent English, which is a crucial factor for effective communication. Sharing similar cultural values allows for built-in understanding when it comes to expectations and mindset. This unspoken understanding can help nearshore teams feel more invested in goals, outcomes and business objectives.

Close geographic proximity makes it much easier and less expensive to meet and collaborate face to face. Bringing teams into U.S. headquarters for training, or visiting them in Latin America, is nearly as easy as a domestic flight. The ability to meet in person with ease helps with both transparency and team building.

Does nearshore outsourcing sound like a good fit for your needs? Set your organization up for success with this guide to preparing your company for outsourcing. Questions? Get in touch. Softensity has teams located in a dozen Latin American countries, and our presence in the region is growing fast.


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