“In the midst of every crisis, lies great opportunity.” This timely statement made by Albert Einstein has been quoted quite a bit since COVID-19 outbroke worldwide in the first quarter of the year. Months later, we can agree that those words still hold true, especially in the way that we work.

Wanna learn more about the Nearshore Outsourcing Model and how it can help you boost your company? We suggest you access it here.

The software development sector has been rapidly evolving by taking advantage of Nearshore Outsourcing opportunities. With “new normal” work standards a.k.a. the WFH model (remote teams, video conferencing, increased autonomy), companies across most industries are also starting to see the benefits of having Nearshore resources. Formerly seen as optional, companies now know that Nearshoring is essential for growing their business.

This woman is holding a laptop and working with agile ceremonies in a remote work environment  because of the COVID pandemic while learning about the benefits of nearshore outsourcing working model

The new “in-house” is at home and across borders

The pandemic brought a lot of unexpected changes to the working space. Some unplanned infrastructural and cultural shifts, as well as capacity demands, had to be addressed to achieve business continuity. But what is more surprising is that some companies have cited far better performance with this new remote model including, sharper focus due to the decrease of distractions, healthier work-life balance, and less time spent on commuting all adding up to an increase in productivity.

The results were so striking that after a couple of months, 82% of company leaders were already making plans to sustain these dynamics after the end of the crisis.

Even though some of the tech giants are just starting to make these adjustments, Nearshoring is not new for the IT industry. Software development powerhouses have been providing staff augmentation services through IT outsourcing for a long time now. Through a solid IT partnership, companies can access senior talent synergized in dedicated teams at lower rates with fewer risks, resulting in effective outcomes powered by agile methodologies.

Outsourcing is a powerful tool that brings experts together to find solutions to complex problems, but as you’ll see, to be successful your business has to choose the outsourcing model that fits best.

This developer is working from his house for a software development project on a mac laptop and an apple iphone while drinking coffee from a white cup and learning the benefits of the nearshore outsourcing working model

Neither Onshore nor Offshore: Nearshore Outsourcing

There are a few options when it comes to IT Outsourcing. The more traditional ones - Onshore Outsourcing and Offshore Outsourcing - have shown their limitations in the past. Onshoring lacks the economic benefits of breaking ground in less expensive regions and lacks diversity, while Offshoring presents challenges concerning dephased communication causing a lag in response time, which is especially important when we need to adapt quickly to changes.

So, is there a goldilocks model for outsourcing?

Enter: Nearshore Outsourcing.

First of all, Nearshoring strategic partners share similar time zones. This fact ensures accessibility and closeness in order to leverage the talent of remote teams that have working conditions and salaries that are more favorable compared to the Onshoring model. It also fosters agility, an essential capability to pivot products and services on the fast-changing world of tech where the demand of developers remains high, adaptability is key, especially now when businesses need to build, maintain, and optimize digital platforms to transition to online services.

Another strong point of nearshore outsourcing is the flexibility it contributes to ready-to-scale models. Having a software development partner located in a different country enables companies to network widely and grow faster among local markets abroad. Nearshoring gives businesses an international presence that helps expansion across regions - without a lot of the growing pains that come with “from scratch” amplification.

This is a map of south and north america. Remote work allows companies to have international presence. nearshore outsourcing and remote work are very similar. There are red dots pointing out different on a latin american map that shows the main nearshore outsourcing destinations for american companies

Dedicated (and happier) teams

Nearshore outsourcing is the key to healthier and more integrated teams - which everyone knows, means better results.

Nearshoring provides the opportunity for developers to get involved in challenging international projects without sacrificing their homes, friends, and family. Diversity in the (virtual) workspace is not only relevant for personal growth but also for companies to offer more innovative and carefully designed products and services.

Communication is key for any outsourcing model but Nearshoring makes it that much easier. Unlike Offshoring where the opportunities for synchronized conversations and collaborations are rare, the time zone match in Nearshore Outsourcing facilitates fluent and frequent communication.

With team members just a call away, it’s easy to see how errors or assumptions can be corrected in real-time instead of waiting half a day to get on track - or even worse, having to work overtime to finish projects. Nearshoring provides a better setting for teams to feel integrated even when they are far apart, increasing something fundamental - a sense of belonging.

This person is having a zoom Meeting with his colleagues with whom she always has daily meetings to remain connected and share what they have learnt over the project while perceiving the benefits of the nearshore outsourcing working model

To sum up - Why Nearshore Outsourcing

Nearshore Outsourcing has the best of both worlds - the agile dynamics of proximity along with the scalability power of international presence. Choosing this model to support and expand your business can save you up to 80% on costs while providing a massive amount of additional strategic perks related to human resources management as well as the development and delivery of products and services.

Consolidated and dedicated teams bring more competitive, innovative offerings and scalable flexibility, all with just one IT outsourcing model. Based on our +24 years of professional experience providing both Talent Solutions and Nearshore Outsourcing for American companies, we can put together a Top Talent IT Team to fulfill your project needs to maximize cost efficiency.

Check out how our Nearshore Outsourcing options are built to fit your business by booking a free consultation with one of our experts.

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Tonic3 Tonic3 is a multi-national digital agency providing UX, VR/AR, and Software Development services with delivery centers in Dallas, TX and Buenos Aires, Argentina. Clients include Citi, McDonald's, Disney, Accenture, BMW, Danone, Banamex, Johnson & Johnson, and Sofitel.
Team as a service, User experience, Software development.
Team as a service, IT Strategy, Software development, IT outsourcing.
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