Outsourcing, specifically nearshore software outsourcing has become a buzzword recently, and most people in the business world are incorporating it. But what is nearshore software outsourcing? It occurs when businesses contract firms outside their countries to manage a particular service, for example, software projects.

Businesses have to manage many operational costs and this is why many are opting to find skilled and professional nearshoring partners to work with. However, with this type of outsourcing, the communication channels and responses have to be top notch for positive results. Are you considering to join the nearshore outsourcing model? Here is why you should:

  1.    Cost Reduction

As mentioned earlier, businesses are doing their best to reduce costs in their day to day processes, and avoiding hiring permanent employees proves to be a huge relief in operational costs.

  1.    Better Communication

Have you ever tried communicating with a person who is in a different time zone? If yes, then you can attest to the fact that it is such an overwhelming process. In business, the importance of frequent communication cannot be overstated. Since the countries contracted for the job are in neighboring countries, it means that the time zones are either the same or there is a slight time difference. Consequently, communication will be easier and you do not have to wait forever to make an inquiry from your nearshore partner.

  1.    Easy Management

For any project to be successful, there has to be a proper management system from the word go. Similarly, with nearshore development services, the project onshore project manager can be hands-on with all procedures that are being conducted with the contracted team. Considering that the communication is in real time, businesses are not only able to monitor and evaluate the nearshore software development project directly but also manage it seamlessly. Additionally, you can travel to the nearby country easily without having to incur in ridiculous transportation costs.

  1.    Risk Reduction

Having a business itself is a risk. The business market is very dynamic and very competitive, and the technology industry in particular. Having a nearshore partner means that some of the risks are significantly reduced. This is so because when entering into a contractual agreement with the party, they share responsibilities if some of the things do not go right.

  1.    Agile Orientation

Businesses have a lot of projects to focus on to remain lucrative. Having a nearshore software outsourcing partner enables you not only to focus on your current project, but also to be able to work on other projects full time.  Moreover, embracing new software projects while working with an Agile team is about functionality and smooth transitions into each development phase, but also about focusing heavily on the user’s needs. An Agile team can really help companies to scale and to create innovative products.