Anastasia Stefanuk January 29th, 2020

6 Myths About Nearshore IT Outstaffing Services

Outsourcing processes and projects have been a widely accepted business model over the past few years.

European companies that hire a Ukrainian development team for their development projects, or BPO companies outstaffing their offices and processes to countries on the other side of the world has been widespread. Despite its apparent popularity, outsourcing is not a simple undertaking. Various approaches have cropped up and been improved over the years. While considerations have gone beyond deciding whether hiring software developers in Ukraine or India is cheaper, and has expanded towards HIPAA compliance for global data privacy policies and cost-efficiency of various outsourcing methods.

What Does it Mean to Hire Nearshore Developers?

Outsourcing opportunities has been highly debated over the years, outsourcing vs outstaffing methods especially. But a more potent but misunderstood outsourcing approach is Nearshoring. Nearshore outsourcing is where you outsource to companies in geographically close areas, not exactly within the immediate area but those that are adjacent.

6 Myths About Nearshore Development Services

Outsourcing services can only be availed by large organizations

Most assume that large companies or organizations are the only ones that can afford to employ outsourcing services, much less employ nearshore services, given the effort and costs required to maintain such services. This is misleading. There is a wide breadth of outsourcing and nearshoring skills, experience, and services that can be employed by different organizations, businesses, and individuals. Businesses of all sizes can achieve the numerous benefits of this business approach. Enhancing organizational and operational flexibility and efficiency bring the most attractive benefits. Employing nearshoring services and teams greatly depend on the scope and limitations of your business needs and not its size. 

Hidden costs inflate outsourcing services prices

Cost is an essential consideration in any form of recruitment, more so with employing outsourcing services. Businesses and organizations can save cost in certain areas by outsourcing projects or processes, but can also accrue new costs. Outsourcing requires to focus on communication, collaboration, and project and time management. These aspects can be costly if not managed well. Take an easter European IT company. It would be more cost-effective to hire a development team Ukraine-based or closer in proximity than hiring development teams in Asia or South America. Nearshore development services reduce costs considerably. The proximity alone ensures that there are more options for more manageable and cost-efficient communication and collaboration tools and processes. Handling outsourced projects and processes to nearshore development teams can be more sustainable in the long run.

Language and cultural barriers get in the way of communication

When working with outsourcing and nearshore teams and experts, there is a high probability of some level of cultural and language barrier that needs to be addressed. Cultural barriers can come in the form of different ways of approaching a problem or a process, as well as the difference in work ethics. Language barriers can hinder progress and cause delays in the project. There are ways of overcoming these obstacles. One of the easiest paths is to employ nearshore services instead. Nearshore services ensure that the experts and development teals that the company hires are geographically closer, and would have close to or similar language and culture. This leads to smoother communication and working relationships between the parties, and more efficient projects.   

Varied and conflicting time-zones hinder project progress

There is a high probability of some level of cultural and language barrier that needs to be addressed when working with outsourcing and nearshore teams and experts. Cultural barriers can come in the form of different ways of approaching a problem or a process or work ethics. Language barriers can also hinder progress and cause delays in the project. There are ways of overcoming these obstacles. One of the easiest paths is to employ nearshore services instead. Nearshore services ensure that the experts and development teams hired are geographically closer. This proximity ensures similar language and culture. This leads to smoother communication and working relationships between the parties, and more efficient projects.   

Limited experts available

Outsourcing projects globally gives businesses and organizations access to a global pool of experts and developers. This opens up the range of skills and experience that can be hired. This approach is more than just a rent a coder endeavor, it is a recruiting at an international level. In the case of having limited local expertise, one of the main benefits of widening recruitment to a global scale is to have more diversity in expertise and experience in potential development teams. In contrast, hiring nearshore development teams can be misconstrued as accessing a more limited pool of expertise. Nearshoring offers the same level of potential for recruitment diversity, but much closer proximity and better cost-effectiveness.

Outsourcing = Low Quality

Widening recruitment to a global scale can attract diverse kinds of skills, experiences, and expertise. Most people might misconstrue this as having low-quality development teams or work. Having diversity in the development teams or services for projects is beneficial in that this can introduce innovation and a wider perspective that would enhance the quality of projects and services. Quality of work is not only dependent on the skills of the development team but also its management and selection of services to employ. This is also applicable to hiring nearshore development teams. Companies and organizations still have that global access, but concentrated in nearby areas, which is more manageable and efficient.

Go and Hire a Nearshore Development Team!

Despite its popularity, outsourcing services and those that provide them still get the occasional bad rep, mostly through bad research and misconceptions. But when approached and implemented right, the benefits can greatly enhance processes and provides more efficient and cost-effective solutions for businesses and organizations. Nearshore development services is a great way to either start on your outsourcing services journey or maintain a more cost-efficient outsourcing collaboration with all the outsourcing benefits. Nearshore software development European companies employing nearshoring Eastern European companies and service providers have shown great progress and results, such as companies hiring software developers in Ukraine and Romania. Nearshore development services provide both cost-effective project and operational management options along with the benefits of outsourcing to global services.

Anastasia Stefanuk

Anastasia Stefanuk is a passionate writer and Information Technology enthusiast. She works as a Content Manager at Mobilunity, a provider of dedicated development teams around the globe. Anastasia keeps abreast of the latest news in all areas of technology, Agile project management, and software product growth hacking, at the same time sharing her experience online to help tech startups and companies to be up-to-date.

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