In the past decades, the choice of outsourcing services has seen an increase in its application. More and more companies decide to outsource services to be able to focus on what really matters to their business, hiring service providers to take on some of the heavy duties. Among the areas that generally gets redistribute are IT development and UX/UI design.
The motives to reach outsourcing, in general, are: lower costs, increase income and profitability, and expand businesses nitches. With the possibilities that globalization offers, it’s not hard to expect that the companies that invoke outsource demand excellence.
The different types of Outsourcing are identified by geography:
- Onshore. It’s called this way when the services required are assigned to another company located in the same country. The advantages are a few, such as the facility of interaction and coordination of the workload; the delay in the processes are reduced, and there is no major concern about time difference.
- Offshore. In this type, the services are outsourced to a company that is located in a different country with a completely different timezone. One of the principal reasons why companies decide to go with this type of outsource is because of the reduction of costs, as this happens, usually, in countries with a developing economy, so it’s usual to find qualified people for lesser price.
- Nearshore. In this type of outsourcing, the service provider is in the neighbouring countries of the hiring company. Usually, it belongs to a country with a similar culture, history or even language, in the same time zone. All those are details that facilitate the day to day work, gaining speed when it comes to arrange meetings and coordinate tasks.
- Inhouse. In this kind of outsourcing, the provider needs to work in the same physical space than the hiring company.
Pros and Cons
Pros
- Lower production costs.
- The investment is reduced in space and Human Resources.
- It allows quick changes to follow the market trends.
- It helps to build a shared value.
- It helps when the company needs redefining.
- Increases the commitment towards a specific type of service and quality.
- It grants the company access to the best of technology without the need to spend into restructures and hiring new staff.
- It allows to quickly access information in a competitive way.
- The company can focuses on the core of its business.
- It allows to have a compact staff in the core areas of the business
- It allows the company to access to a strong workforce, with an accessible cost.
Cons
- The hiring company loses contact with technology trends, so it looses chances to innovate on products and processes.
- Sharing insights with another company might not be always ideal.
- The cost saved when hiring another company might not be the what it’s expected.
- There is a high cost when changing provider, if the delivered results were not as expected.
- Reduction of benefits.
- If the service provider company takes care of the production, then the hiring company loses control over production.
When it’s time to decide who is going to code for you, think about three fundamental factors:
1. the cost of hiring a developer
2. the level of expertise that you need
3. the flexibility to change your mindset with a new whole concept of teamwork.
How we do it: aiming for excellence
At Bixlabs we specialize in Nearshore outsourcing. Most of our clients are in the United States, although we have done jobs for companies in Europe. We are known for developing an excellent relationship with our the companies that hire us, as a matter of facts, we still work with our first client!
Our commitment is to quality, that’s why we work with the best talent in Latin America. Due to the advantages of remote work, we have been able to set a strong team, regardless of frontiers, with people from countries like Colombia, El Salvador, Ecuador, St. Vincent and the Grenadines, and several others.
We care to be on top of the tech trends, and specially we care if the new technologies are the right ones to be used on our clients projects. For that reason, our teammates are always improving their capacities, coursing masters and even PhDs!
If you want to know more about us, check the About Section on our web or feel free to contact us!
