5 Reasons to Keep Your Outsourcing Close to Home
Outsourcing your software development doesn’t necessarily mean you have to go around the world in search of the right partner. Yet many managers equate well-stocked, inexpensive talent pools with China, India, or Russia.
There is another option, however, and it’s closer to home. Through our development center in Costa Rica, our consulting firm offers so-called nearshoring. This can provide the same cost savings as a typical offshoring arrangement, while avoiding many of the headaches that typically come with offshoring. A well-executed nearshore outsourcing strategy can result in:
- Faster time-to-market
- A better end product
- Improved customer service
- Less frustration and fewer missed targets
Here’s why we like using development teams in Central and South America:
1. Time Zones
Working across multiple time zones can create tremendous burdens for offshore development. Your software development team is often up and working while you are asleep or not in the office. When you or your offshore partner have an inevitable problem, it can take 12 hours to get an email answered, and another half-day before those responses are read. Then you often have take a conference call outside of normal business hours.
If you use nearshoring, you can often work in the same time zone as your outsourcing partner. Phone calls and emails can be answered in right away, vastly improving communication for all parties.
2. Corporate Culture and Expertise
Many companies based in Central and South America have corporate cultures very similar to those in the United States. Employee work habits tend to be comparable, and stable political environments reduce the risk that your project will be interrupted by a larger chaos you can’t control. The region offers a rich talent pool with plenty of engineers who are just as skilled as those in other parts of the globe.
3. Reduced Turnover
Companies in countries that are traditionally used for offshoring, such as India, tend to suffer from high levels of turnover. Many nearshore options have better internal continuity, with teams that have worked together for longer periods of time. Lower turnover typically translates into greater stability and faster project turnaround.
4. Lower Language Barriers
Without effective communication, even the best project managers and software developers will be challenged to deliver successfully. Your organization must have a free flow of information with your outsourcing partner. Because nearshoring partners live in regions closer to home, they often have a greater familiarity with English and, as I mentioned above, with American culture.
5. Easier Travel
A trip to Asia is expensive and time-consuming. It is much less burdensome to catch a plane to Central or South America. The flight south is faster and cheaper, and often allows you to stay in the same time zone.
Co-founder of Austin-based Growth Acceleration Partners (GAP), Joyce Durst thrives on the challenges and opportunities of helping software companies achieve rapid growth. As a veteran of the software industry, Durst applies her passion and knowledge to help other business owners more efficiently create the software of their dreams.