It is quite a challenge to establish a business relationship that involves outsourcing or entrusting part of a project to an external company. Although finding a nearshore software development partner seems to be less risky than outsourcing, it is still a process that requires proper research and time. However, as in any industry, there are specific rules to follow to successfully find the right nearshoring software development partner.
Pros and cons of hiring internal employees
Hiring internal employees is a great convenience but also a challenge. Creating a team of specialists who will get along with each other in every situation, providing a friendly atmosphere, various benefits, and employee development opportunities is not easy. While it’s true that hiring experts internally is a sign that your company is growing, job turnover involves much long-term recruiting, and finding the right people to fit the role isn’t just your digital agency’s problem, 9 out of 10 HR managers and recruiters (86%) find hiring technical professionals challenging. When you add in the fixed costs associated with hiring, such as taxes, training, licensing, fees related to renting space, and purchasing and maintaining equipment, you may find that hiring people full-time isn’t always the best option.
In case of looking for savings, but also when covering a given role in a project takes too much time or you are looking for more flexibility in different time frames, it is worth considering outsourcing within your own country or nearshoring software development in countries leading in this field.
What is nearshoring?
Nearshoring is a term similar to offshoring but with some extra benefits. It is based on the same principle as exporting labor to another country, except that instead of offshoring labor to a faraway place, you are outsourcing to a neighboring country. Outsourcing a strategy to a team in a different country may lower the planned budget, depending on labor cost and taxes, in the country where the nearshoring partner is stationed. It also allows you to open up new market specialists or entire teams specialized in IT development. Both offshoring and nearshoring of software development projects are very popular in the IT industry. Therefore it is worth considering how to find the best nearshore software development partner.
What should you look for when choosing a nearshoring partner?
To save money, many companies outsource their IT projects to distant countries, such as India, Pakistan, or China. As long as the headquarters of the contracting company is located nearby, such a solution has many advantages and is cost-effective. However, if the contracting corporation is located in the U.S. or Europe, there may be certain complications, not related to technical aspects but also having a very large impact on the process and affecting the overall satisfaction of the originator. Finding an IT enterprise near your headquarters is what nearshoring is all about.
Culture and language
Undoubtedly an important aspect when choosing a nearshoring software development partner is cultural similarity and language skills. Of course, the hourly rates in Europe are higher than in Asia. However, the costs associated with implementing fixes due to communication errors may ultimately prove to be higher. Work culture is greatly influenced by the culture of not only the organization but also the country. Therefore, the differences between European countries are much more minor than between continents. When it comes to language issues, it is advisable to aim at English communication, although it is not said that you may also come across specialists fluent in German or Dutch.
As we are used to the fact that the internet network allows us to be in constant communication, when we work mainly with partners in one area or country, we should check our partner’s working hours when it comes to nearshoring. With the difference in time zones, the discrepancy can vary between 1 and 10 hours. The whole process’s organization is then different, and it is worth raising this issue during discussions on the details of cooperation. Overlapping the working hours of both parties involved in the deal means greater control over the project, faster response, and enables various forms of contact, not only the exchange of emails.
When looking for the right team to professionally execute your outsourced project, it’s a good idea to look for experts in the field. Choose a trustworthy organization with an established track record and expertise in the area you’re involved in. At the stage of finding the right contractor for your plan, you can look through case studies, search for a business similar to yours and discuss the details. Focus mainly on discussing technical details. This is, after all, the core of your project. If you talk to tech experts, you will recognize it right away – experience cannot be faked.
To find opinions about nearshoring partners in your area, it will be useful to use ranking services, such as Clutch.co, techreviewer and ITFirms.
Proper organization is significant in the software development process. Of course, the enterprise’s structure depends on many factors, such as the number of employees, but it is always worth having a specific name of the person responsible for the task, which is usually the Project Manager, but this is not the rule. Moreover, it is worth knowing how internal communication looks like in the company, whether there are daily stand-ups or daily communication between team members working remotely or the different stages of the process. A lot of this information can be found in the Process Book. However, during negotiations and market research, ask about every detail!
Know-how and engagement
A software house is only as good as the specialists it consists of. Most organizations showcase their teams, and this is the perfect place to verify that the company can cover your needs for a particular technology and if they can scale the crew dynamically in case of different contingencies. You can also check the employees’ LinkedIn profiles, learn about their experience and the projects they have been involved in. An excellent place to check know-how is the blog, where specialists working in a given software house share their knowledge. Not only will you be able to find out if the experts are up-to-date with the latest technologies, but you will also be able to find out the answers to many questions. Choosing a quality partner whose processes and knowledge are of a high standard will translate into feeling like your internal team has grown.
Why do companies choose Poland for IT projects?
Deciding on nearshoring, most companies consider Poland as a great and appropriate choice. According to the HackerRank report, Poland has the third-largest number of in-depth experienced programmers in the world. Besides, Poland belongs to many organizations, such as the EU, UN, NATO, and the Patent Cooperation Treaty, that ensures safe data exchanges with partners, something that offshoring companies from Asia may not often do. There are few cultural differences in terms of language or work organization, which translates into accessible communication. So if you want to hire the best programmers, for a relatively low price, with a guarantee of high-quality code – choose Poland.
Do you want to know more about nearshoring software development?Talk to our team!
Trusted nearshore software development partner
Nearshoring has many advantages to consider when looking for the right software development partner. One of the overriding and often cited as the main benefit is finance, but if your project is key to your business, don’t go for price alone when selecting a vendor. Choose a professionally competent software team and have proper organization skills, proven process and expertise, especially if you don’t have much experience in developing new digital products. At Applover, our aim is to work with our clients as if we work for ourselves, making an effort and engagement we share our insights eagerly. Finding the right partner can also translate into a long-term relationship rather than a single project, good luck!