Why Nearshore Outsourcing Will Be The Next Hub For US Companies Software Development Services

nearshore outsourcingOutsourcing Software Development Services

In the United States, the Information Technology (IT) and Software Development sectors have been bridging the gap between company growth and lack of manpower using outsourcing. Outsourcing sends work to technology professionals who are not employed in-house by the company. However, they are capable of completing the tasks at hand and often have freelancing rates that they then charge the company whose services they completed. There are three kinds of outsourcing:
  • Onshore outsourcing - using a software development provider located in your own country. In the United States, this often works by using a firm in another state. For instance, a company located in Silicon Valley may outsource some customer service workers in Texas.
  • Nearshore outsourcing - finding a firm to fulfill IT or software development needs in another country, however one that is only a relatively short distance away so the time zones are comparable. In the United States, many companies outsource to agencies located in Central America.
  • Offshore outsourcing - using programmers and IT managed overseas in a different time zone on the other side of the world. IT work is very affordable in Asian countries such as India and China.
Nearshore outsourcing and software development combines the benefits of onshore with the cost-effectiveness of offshore. Reducing the physical distance between the teams allows for more effective communication and less of a cultural barrier. In return, there are less delays in projects and teams are able to work during the same hours, meaning less monetary loss for the company.

Nearshore Outsourcing as a Hub

A technology hub doesn’t have a neat definition, but Marketplace Tech’s Ben Johnson makes a pretty compelling argument that a hub should have four things:
  1. Government support
  2. Homegrown talent
  3. Venture Capital
  4. Culture
For comparison purposes, we are going to use San Jose, Costa Rica (where one of our nearshore offices is located). The headlines speak for themselves…

Government support? 

Mayor of San José, Costa Rica Promotes the Creation of a Hi-Tech City

Home-grown talent?  

Women’s Hackathon takes place in San José

Venture Capital?

A dozen founders and funders to watch in Central America and the Caribbean

Culture?

San Jose Pursuing Dream Of Being Friendlier, More Modern City

Costa Rica is one location that proves nearshore outsourcing is not only beneficial to tech companies in the United States. Thanks to the nearshore outsourcing opportunities that are flowing into the country, the country itself is able to grow and thrive. All-in-all nearshore outsourcing has all of the benefits of hiring in-house employees and outsourcing work to freelance workers. Plus, it helps the economies of not one, but two countries grow simultaneously. At Number 8, we believe in the up-and-coming tech hubs that benefit from nearshore developing. If you’re interested in learning more about Number8 and what we do, give us a call at (502) 890-7665, or check out our information page here!

Five Things to Know Before Hiring Offshore Developers

offshore developers Hiring offshore developers to complete software development work for an onshore company is becoming more and more popular. Benefits include: you get to focus on the big picture of your company while someone else does the detail work, office-wide productivity is increased with fewer office distractions, and you are opened up to fresh ideas that are seen through a new set of eyes. These are only a few of the benefits to outsourcing. Follow along with this Number8 blog to learn more about other benefits to outsourcing. However, before you decide to hire offshore developers there are some important things to know and important questions to ask. Below, we’ve outlined five things to know before hiring offshore developers.

Five Things to Know Before Hiring Offshore Developers

1. Communication is Key

The biggest challenge when working with someone who isn’t in an office with you is often communication. Finding ways to communicate the goals of your business can be difficult if the only communication is over the phone or through e-mail. Being aware that communication is crucial to success is the first step to a partnership with offshore developers. You can improve communication with offshore developers through programs like join.me and Skype that allow you to share screens with other computers. Another useful tool for communication is Lightshot – a screenshot tool that allows you to mark up images for 100% clarity.

2. Keep Timezones in Mind

If you are working with offshore developers, more often than not you are located in a different timezone than your offshore team and need to consider the hour difference. When searching for a team of offshore developers to hire, be sure to consider the difference in hours. Ask yourself what kind of effect the difference will have on your work flow. It is recommended to hire an offshore team that is located in similar time zone to your own. This is helpful so you can communicate with your offshore programmers throughout the day, experiencing more of a "real time" development experience and workflow.

3. Experience Levels

Whether you are a new business that is only getting started or an established business that has been around for years, you’re going to want your offshore developers to have experience. When you hire offshore developers, it is really important to consider how much experience they have. The more experience, the better. An experienced developer or team of developers will be capable of completing complicated tasks at a faster rate and with more accuracy. This, in the long run, saves you time and money while also helping to propel your business to the next level.

4. The Kind of Team You’re Working With

You need to hire offshore developers in the same way that you hire in-house employees. Look for the same qualities that you look for in potential hires who you interview face-to-face. Hold your potential team of offshore developers to the same standards. While the offshore developers aren’t going to be people you see every day or work in close quarters with, you will be depending on them for important IT work that your business will be relying on. You’ll want to hire people that you could get along with if you were to work in the same office with them. This way communication comes easier and trust can be established quickly.

5. How You Will Pay for These Services

Before hiring offshore developers to take care of your IT work, you will need to determine how you are going to pay for these services. Make sure the company that you choose to work with is legitimate and that they offer a variety of payment options. It is particularly beneficial if they have a U.S. location, along with their offshore programmers. Talking with other happy customers can be another great way to gain confidence that you are choosing the right offshore company for your business. The offshore developers you hire can have a significant impact on the success of your project. If the team is not familiar with the methodology or programming language best suited for your project, hire a different team. At Number8, we use the Agile method when approaching software development projects and incorporate Scrum into our work. Our team of highly experienced, software development professionals are skilled in many programming languages. If you are in need of offshore developers to help with software development for your company, contact us today.

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number8’s onshore office is located in Louisville, Kentucky where our Account and Relationship Managers work hard to provide all of our clients with exceptional customer service. We also have consultant offices located in Escazú, Costa Rica and San Pedro Sula, Honduras that give us a strong local presence allowing for top-level recruitment, technical training and low employee turnover.

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