Outsourcing | January 3, 2019

Nearshore vs. Offshore Software Development

Nearshore and offshore are two outsourcing terms often confused. With a sound knowledge of both of these concepts, we can choose the most viable option for our business.

   

What benefits do both nearshoring and offshoring present to businesses looking for specialized IT services? How does our selection influence the outcome of agile software development practices? Read on to find out.

Nearshore vs. Offshore Outsourcing | Zooming in on the Differences

Most business managers have heard of the terms “nearshoring” and “offshoring” when it comes to Business Process Outsourcing and IT outsourcing, but can’t quite put their finger on what they mean. Both are options that provide access to talented software developer teams in regions outside of their own national boundaries, often at reduced costs. Take the example of a company X based in Germany looking to roll out a new software project, say an innovative payment system. The company doesn’t have its own in-house IT team, or they aren’t as specialized as the project demands. Company X tenders the contract and two IT companies, one from India and another from Poland, are finally shortlisted. How will Company X make the right choice for its business needs?

This situation perfectly depicts offshoring (in the case of the Indian contractor) and nearshoring (in the case of the Polish contractor). In the former case, the contractor is thousands of miles away, and there are vast time-zone, language and cultural differences between the development and client teams. In the latter case, these differences are significantly reduced. In fact, the client team from Germany and the Polish nearshore contractor can easily integrate their operations due to the proximity of these two countries, aided by the fact that there is a smaller language, cultural and economic barrier.

Making the Right Choice

Now that we have a better understanding of the concepts of nearshore and offshore, how do we make the best selection for our company? Both of these options spring up from a lack of technical expertise to successfully deliver on complex IT projects. Instead of dedicating precious time and resources setting up an expensive in-house team, the cheaper option is to go for an IT outsourcing company. This allows companies to focus on their critical mandates of product creation and customer satisfaction.

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The software development process delivered by a professional IT outsourcing company should be undertaken in an agile way. Agile simply means that all of the software development process goes throughout the key phases of planning, designing, developing, testing, and implementation or execution. The development process doesn’t stop at the final roll-out. Maintenance tasks are continually required as a critical part of the agile methodology. Therefore, when choosing between nearshoring and offshoring, it is always essential to consider that your final choice will influence the cost, speed and outcome of your software or application development.

Why Nearshoring is the Best Option for Your Company?

With an agile approach, constant communication between the internal and contracted project teams is needed for successful implementation of the IT project. Nearshore software development far supersedes offshore outsourcing in several ways. First, the distance and time-zone constraints between these two teams are significantly reduced, providing an optimal environment for agile methodology. In the case of Company X based in Germany and a Polish contractor, movement and integration between the two teams are streamlined.

Since these two companies operate in the same geographical area (i.e., Europe), there is a better understanding of the business operating environment, any data privacy limitations, and a significant reduction of contractual costs. Teams can work together in real-time, and there won’t be too many concerns of the process and people management. Your company can visit the contractor’s nearshore offices and get a feel of how they work and other projects that they have previously undertaken.

Read more: Models of Cooperation with an Outsourcing Partner

Choose Poland for Your Nearshore Requirements

Poland is one of the highest ranked destinations in the world for nearshore outsourcing services. For European clients, it is especially ideal because of its advantageous location. The Polish economy is highly specialized, with about 78,000 tech graduates each year and a high number of programmers with mastery of front-end, server-side management, APIs and Big Data. Language preferences include Java, Python, JavaScript, HTML and Objective C. Additionally, Poland ranks highly on popular HackerRank’s lists of the best programmers in the world.

With a Polish nearshore company, such as JCommerce, companies from Europe can benefit significantly from a multi-lingual economy, ease of travel, stability, and an entire range of experienced project management specialists for any IT project needs.

Piotr Zygula

Piotr Zygula

CEO

Piotr has been part of JCommerce since 2005, and since 2010 has been CEO of the company. His most significant responsibilities include company strategy and sales management. He studied at the Warsaw School of Economics and the University of Cologne where he furthered his education in economics and management, and is also a graduate of the ICAN Institute in Warsaw. His professional experience was acquired in such companies as Compaq, KLK and Techmex. In his private life he is a fan of Bayern Munich, a marathon runner and a lover of authentic Italian pizza.