Advantages of Nearshore Outsourcing Software Development

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Advantages of Nearshore Outsourcing Software Development

April 26, 2022 0 Comments

With a skyrocketed digitalization the concept of Software Development Outsourcing has grown in popularity. Simply put, outsourcing in software development means delegating a software development project to an external vendor who is qualified and capable of handling the required business tasks. Worth mentioning that not only non-tech companies outsource their software development, but well-known tech leaders such as now outsource some of their routine software development tasks as well. 

What is Nearshore Software Development Outsourcing?

Delegating software development to external teams is full of advantages, nonetheless there is long list of related risks as well, including different time zones with different business hours, cultural differences, challenges to manage processes remotely, possibility of miscommunication or misunderstanding, difficulties in knowledge transfer, security risks etc. After years of experience some companies elaborated a hybrid approach also known as nearshoring or hiring software development companies in nearby countries. It allows businesses to achieve significant cost savings while maintaining efficiency and convenience.  

Let’s take a closer look at the advantages of nearshore outsourcing. 

The benefits of Nearshoring.

  • Cost optimization.

One of the most significant benefits of outsourcing is cost efficiency. On average customers can save up to 30% by choosing software development outsourcing. According to a survey by Deloitte, 70% of companies are motivated to outsourcing by reduced HR costs related to recruitment, training, and managing in-house teams. When you choose to go to nearshoring option, your external vendor covers all administration, and infrastructure processes, which also helps in cost reduction. 

  • Closer collaboration

A short distance between your company and your vendor allows for closer collaboration. Because both teams are in the same time zone, it is easier for them to schedule online meetings, and if physical presence is required, it is much easier and less expensive to plan a business trip. 

  • Similar regulations

One of the most important issues to consider in software development process is regulatory compliance. Businesses focused on the European market, for example, must comply with GDPR (General Data Protection Regulation), whereas legislation for the US market will be slightly different. Using an external vendor in your region ensures that they understand all the nuances of the local legal regulations. 

Our Expertise

Klik Soft provides a full range of software development and testing services for your business. You don’t need to search for different vendors to cover an entire software development lifecycle from analysing requirements to maintenance and support. We provide all you need and even more. From software design and development to quality assurance testing, software deployment and further support. Klik Soft is your reliable IT partner. 

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