In order to grow, businesses in the digital age must make important decisions about their operations. One of these decisions is choosing whether to conduct software development in-house or start searching for an outsourcing partner to do the work.
When outsourcing software development, a business hires a third-party contractor to handle a project that could have been accomplished in-house. Outsourcing not only enables companies to achieve greater economies of scale but also focus on their core competencies without wasting time and resources.
Perks of an In-House Team
Before delving deeper into the benefits of nearshoring, it’s important to discuss the benefits of having an in-house IT team first.
“In-house” means conducting operations within a company instead of relying on outsourcing. With an in-house team, the software is developed using the company’s resources.
Some of the benefits of in-house development include direct communication, quicker implementation of changes in the project’s features, and better integration with the company’s culture.
However, there are also drawbacks to hiring in-house developers. The high cost is one concern businesses have since in-house development is far more expensive than outsourcing. Lack of talents and slow staff turnover also discourage many businesses from turning to in-house development.
Why Nearshore Software Development Works
Nearshoring is an outsourcing model where a company finds a development partner in a different region or country. What sets it apart from the other types of outsourcing is the fact that the development partner is in close proximity to the company. Because the two partners are often in the same time zone, there is better communication between them and frequent visits are possible.
A primary advantage of nearshore software development is cost flexibility. Many outsourcing companies around the globe offer affordable prices in exchange for high-quality services. Access to huge talent pools is another benefit from nearshoring—the hiring process can just take days at the most rather than months. It’s easy to find a suitable person for your project because you can find many technical specialists who have experience and knowledge in the industry.
In addition, working with a reliable vendor allows your business to freely scale up and down. You can make your team expand if you need the development process to speed up, then lessen the number of team members once the project has been completed or you no longer need as many people working on it.
Other advantages include faster project delivery and a wide range of technologies to choose from.
Similar to in-house development, there are cons to nearshoring. Communication gaps may affect the development process as there may be a language barrier between you and the vendor. Security is also a main concern as you may not feel well-protected when working with a company in a different country. To address this, some companies require their vendors to sign an NDA contract.
In-house and nearshore software development have their unique pros and cons. To find the best option, it’s important to focus on establishing your needs and priorities.
If you want the lowest rates, nearshoring is the way to go. Quality, communication, team size, and length of engagement should also be considered when deciding which model to select. If you're planning to hire long-term developers, then hiring an in-house team would be the better choice.
Regardless of what you choose, the right software development partner should be able to help your business grow by being more efficient while reducing any risks along the way.