What is Nearshore/Offshore outsourcing?
Nearshore Software Development Services: This service model, gives companies a close dedicated team which allows them more control over project development flow, more engagement with the team in-house, and minimizes problem points thanks to faster reaction time and software development life cycle maintenance services.
Offshore Software Development: Outsourcing abroad gives organizations temporary access to high-quality services and savings in operating costs. Collaborating with an external organization and assigning that organization to carry out some of its business or software development roles is a great alternative for technology projects.
Nearshore Advantages
Time Zones When thinking about outsourcing for your IT projects, nearshore software development services make sense for any North American company, not only because of its convenience in terms of pricing and software development life cycle maintenance services.
Taking a look at geographical proximity, Central & South America’s time differences are minor compared to outsourcing in Europe or Asia. Latin American countries offer the flexibility to have conference calls or make changes to current projects on the same day.
Did you know 70% of the world’s outsourcing used to be held by India? Today, its share fell below 45% due to time zone differences.
Travel The cost of doing business nearshore is more efficient than offshore because of flights, hotel stays and food for those traveling.
“We factor an additional 30% into our costs to India for travel and other soft costs. Going to Mexico works out cheaper.” – U.S. Buyer, HFS Research
Productivity – This is huge issue for most companies due to time zone differences which result in delayed communication and deliverables.
Talent & Staff Turnover You would think that offshore outsourcing helps businesses save money by employing highly skilled workers and educated workers, but the same can be said for the large pool of talent in Latin America.
Universities in Latin America have a high number of graduates who can compete in the world stage alongside many US colleges and universities. Brazil has the most Java programmers in the world and the second-most mainframe (COBOL) programmers. Moreover, businesses that hire nearshore teams experience a lower rate of turnover due to the loyalty South & Central American work force have for their place of business.
Holidaze While it is true that other countries have more days off than the US, none have more than India (77) or China (33). In Mexico and Argentina, holidays barely reach the 25-day mark. This means workers will be taking care of business when you need it most.
Intellectual Property Protection Many Latin American nations have signed Free Trade Agreements with the USA, which guarantee
IP rights to foreign companies. The National Crime Prevention Council has issued warnings concerning China and India for piracy of intellectual property.
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