Business
14 września 2021

5 Reasons to Start Nearshoring in Your Company

​Nearshoring offers many business opportunities and allows for flexible cooperation with the selected IT partner. It is a solution both for companies that do not have their own IT team and for those that need quick support from specialists in a given area or a dedicated team to implement the project.

Nearshoring – what is it?

The IT industry is one of the fastest growing business branches. Not only thanks to the technology it offers, but also thanks to the wide range of services that it can provide to companies from other industries. One of them is nearshoring, i.e. outsourcing of services to countries that are located nearby and, what is very important, with similar cultures and having common business goals. Another option is offshoring, which consists in outsourcing tasks to entities that are located far away from the client – for example, when companies from Europe outsource the implementation of projects to companies from India or China. For years, it has been the most popular form of IT outsourcing but nowadays is losing its importance.

Nearshoring offers many business opportunities and allows for flexible cooperation with the selected IT partner. It is a solution both for companies that do not have their own IT team and for those that need quick support from specialists in a given area or a dedicated team to implement the project.

Benefits of nearshoring

  1. Access to a wide group of IT specialists – you do not need to hire new employees to take advantage of expert knowledge. By working with a nearshore software development company, you have access to your partner's supply base of developers with extensive experience and adequate skills. This is an important benefit when you need to create brand new software using technology in which your team does not have experience.
  2. Optimization of IT project costs – the possibility of a more effective project implementation than in the case of carrying out tasks in-house. In addition, you do not have to start the recruitment process and you avoid administrative costs or those associated with retaining an employee or the entire dedicated project team.
  3. No geographical distance – on the one hand, the lack of large distances between countries, e.g. located on different continents, translates into cooperation costs related to business trips and meetings. On the other hand, cultural and business closeness is crucial for mutual understanding, defining goals and ensuring comfortable conditions for cooperation, communication, and good rapport between people working on the project. By choosing a business partner whose culture and work ethic are similar to yours, you will avoid uncomfortable situations or misunderstandings. This is one of the crucial factors having an impact on raising efficiency and popularity of nearshoring, compared to offshoring.
  4. Increases competitiveness – by outsourcing software development, you gain access to new technological knowledge in areas in which you do not have the appropriate experience. This allows you to improve the quality of services or products, and thereby – increase the company attractiveness. Your business partner will provide you with a lot of advice and tips, valuable for completing the project work on time. Nearshoring creates an opportunity to develop the best solutions and enhance the attractiveness of your business.
  5. Time saving – you gain efficiency on many levels. You will avoid the lengthy recruitment process necessary to find programmers in given areas and specializations. Thanks to this, you do not have to wait and you can start implementation of the project quickly.

When is it worth taking advantage of nearshoring services?

The nearshoring services are used by companies from various industries having demand for competencies of developers and other IT specialists. Despite the fact that every enterprise, thanks to nearshoring, can achieve its goals, this solution is especially recommended to those organizations that:

  • Want to minimize costs. Nearshoring means that the project implementation costs can be reduced. Depending on the size of the project, it allows for significant savings.
  • Implement the project under time pressure and cannot afford to create or expand their internal IT team. As part of nearshoring services, the team is completed faster, and thus the project can be implemented on time.
  • Have an IT team, but its capacity is insufficient to implement the project. Recruiting in order to strengthen the IT department for a few weeks or months is usually not profitable.

New models of cooperation in IT nearshoring

The key to the success and scalability of nearshoring is the use of the build operate transfer model to set up an operational team. Build-operate-transfer (BOT) is a comprehensive approach to IT project implementation that is gaining popularity. It consists in establishing independent and operational branches of the company in remote locations with the help of an external IT provider. Thanks to the BOT model, customers are able to develop faster, deliver their products in a shorter time, taking advantage of outsourcing at the same time.

Nearshoring – why Poland?

In 2020, Poland was ranked third on the list of countries with the best investment potential (The CEOWORLD Magazine, 2020), and is also one of the most important locations for outsourcing business and IT services. Customers from Western Europe (Germany, France, the Netherlands), Great Britain or the Scandinavian countries (Sweden, Norway) particularly appreciate cooperation with Polish specialists due to the lack of cultural differences and lack of communication problems. For example, a flight from many European capitals takes about one or two hours. The big advantage is the fact that every year about 15,000 IT graduates appear on the Polish IT market, and the English language is widely used at work by Polish programmers. The costs of nearshoring in Poland are lower than in the case of employing specialists on the local market, while maintaining the quality of services provided.

Today's technology facilitates remote collaboration more than ever, so that software development services can be provided from anywhere in the world. What's more, we have a generation of young leaders on the labor market who are more and more willing to choose this form of cooperation.

Summary

Nearshoring allows you to strengthen the potential of your business, develop in the field of new technologies and efficiently introduce innovative solutions that will also allow your customers to benefit. IT outsourcing offers many opportunities, but also calls for commitment, building business relationships and openness in the search for unconventional solutions. With a good guide to the complex world of new technologies, you can find new ways for your business to grow.

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