There has always been a close battle between nearshore and offshore for the top spot in companies’ list of preferred outsourcing strategies, but one of these solutions has outshined the other time and time again, managing to claim victory; and that winning strategy is nearshore. This popular practice, that implies delegating software development to specialized outsourcing companies, which carry out their activity in countries in geographical proximity to that of their clients, has outperformed its main competitor, embodied by offshore, and successfully maintains its lead.
So, how does nearshore do it? Well, in order to have a greater understanding of how nearshore trumps offshore, allow us to break down some of the areas where this strategy has the upper hand in.
The ease of travel and flexibility that nearshore comes bundled with, are unrivalled.
Partnering up with an outsourcing company operating close to home, allows businesses to easily reach their remote hired teams. And by being only a short flight away from the latter, thus having the possibility to make frequent visits, companies are able to better control and supervise their projects’ progress, as well as build a strong working relationship with remote specialists. This is not the case however when choosing offshore, as this outsourcing strategy implies working with distant remote teams, that are more difficult to reach. The higher costs that travelling to a faraway country involves, along with the extended time that such a trip takes up, are often discouraging factors that determine companies to rarely meet up with their remote specialists. And in an era where flexibility is crucial for the success of any company, the rigidity that describes offshore represents a major inconvenience.
When it comes to communication, the issue of language barriers makes offshore come in second yet again.
Clear and efficient communication is key for a thriving outsourcing partnership, and in the case of a strategy such as nearshore, this is a benefit that companies are sure to fully enjoy. For delegating projects to a nearby country, offers the advantage of fewer mishaps caused by language difficulties. In this sense, hiring companies are able to communicate effortlessly with their nearshore development teams, that are familiar with in-house specialists’ language, and, as a result, collaboration will go smoothly. Throughout an offshore partnership however, things could not be any different, as hiring businesses will most likely have to face serious obstacles, because of language dissimilarities. These differences can cause major financial loss, delays, or issues revolving around the lack of transparency, all which make offshore lose valuable points in front of nearshore.
Nearshore offers excellent cultural fit, as opposed to offshore, that is associated with frictions surrounding cultural differences.
The importance of being compatible with your outsourcing partner cannot be overstated, and cultural fit plays an essential role in this overall compatibility that we are referring to. In this regard, nearshore represents a go-to choice for those who wish to take advantage of the precious cultural similarities that this solution guarantees. What’s more, nearshore development teams are already familiar with their clients’ way of working, practices, and work style, which only makes this outsourcing strategy all the more appealing. Offshore on the other hand, is often associated with issues that arise from cultural differences, as collaboration between hiring businesses and offshore services providers can even come to a standstill, due to such frictions.
Security wise, nearshore has the upper hand, as outsourcing partners who operate in nearby countries, often follow the same or similar data protection laws as hiring businesses.
Aspects surrounding intellectual property rights and data security laws must be given due consideration, so that companies can ensure that they are not exposed to any legal risks. In this context, nearshore represents the safest option, seeing that nearshore partners usually comply with the same legislation, or, even if not, are likely to be acquainted with the laws that their clients must follow. In contrast, turning to offshore may bring along security risks and less control over businesses’ intellectual property, which call for strict protocols and additional security measures.
Conclusion
Nearshore still trumps offshore and we all know it. The flexibility and ease of travel, along with the perfect cultural fit and language and legal similarities that nearshore entail, are unique perks, that offshore cannot even come close to. It is therefore safe to say that nearshore represents a superior outsourcing strategy and a force to be reckon with, and companies that have adopted it can surely confirm.