When prefer nearshoring over hiring?
The management often faces a choice when considering the idea of transferring some functions: whether to recruit another pro for the team or find a third-party company. This company might be nearshoring, which involves contacting teams of developers or IT specialists that are geographically close and only have a 1–2 hour time difference.
If you’re already advanced in this topic, check out our checklist on how to manage your on-site and nearshore teams.
The general concept of nearshoring is to reduce the risks and complexities that come with working with a supplier from a distance. This includes minimizing the distance, time zone differences, language barriers, and cultural differences. Nearshoring is one type of outsourcing.
Is it ok to delegate your tasks to some strangers?
Outsourcing software development (including mobile applications) is increasingly popular today, as businesses intend to ease pressure on in-house staff. The global market for outsourced services is worth an astonishing $92.5 billion already — and there’s more to come. 78% of businesses have a favorable view of outsourcing. This is something to think about.
1. It’s less expensive
According to Deloitte’s yearly global shared services and outsourcing report, almost 84% of companies outsource to reduce or control their costs. Nearshoring means you’re paying for services of web (or iOS, or Android, etc.) developers only, without the typical expenses associated with in-house staff, such as social security, medicare, federal income taxes, holidays, etc.
2. You don’t need a recruiter or can take responsibility away from them
Recruiting employees is cheap and easy nowadays. Besides, you can gain skills and reviews of a potential candidate. It is also cheaper than advertising a job vacancy, hosting interviews, onboarding, and other tasks related to hiring in-house staff. Glassdoor says that the average employer in the United States spends around $4,000 on hiring new staff.
3. Fits perfectly for a project work
The average length of the process of recruiting an IT specialist for a full-time job is 23.7 days. Hiring a programmer is a complicated process, so it can’t be done quickly. In addition, the training process also takes time. It’s much simpler to hire a programmer on a nearshoring basis. You should hire specialists who have the right set of skills for a particular project and are able to work with the programming language you have in mind.
4. What about IP rights?
If you want to feel safer about your IP, remember that trustworthy nearshore companies can specify ownership, give you a proper explanation of how your data will be physically protected, and have a better understanding of how the software development company approaches your cooperation and the resulting software product. At least, this is what we, at Moqod, do.
5. It’s an excellent opportunity to bring in fresh minds
There is no doubt that your staff is perfectly capable of working on the tasks they have on the job board. But an outside perspective is always helpful: it can drive innovation and lead to a better project in general. In this case, look for a niche expert with unique expertise and invaluable information.
How to choose that-one-and-only company for your business?
The most important thing is to clarify your company’s IT outsourcing needs and challenges. For that, answer a few questions below:
- Do you need a long-term business partner or short-term support for your custom software development?
- What role do you want an outsourcing company to perform?
- Do you want to dive straight in with the entire project or start small and extend later after success is proven?
- Do you need daily contact with a software development team or would you rather stay responsible just for laying down requirements?
- Do you want to kick off implementation immediately?
The icing on the cake is your opportunity to concentrate on business strategy and critical processes happening inside. The good nearshoring = a highly qualified team is taking care of what you delegate them. You know where to find us 😏