3 Things That Suggests It
2 Pages
English
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3 Things That Suggests It's Time to Go Nearshore

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2 Pages
English

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3 Things That Suggests It's Time to Go Nearshore For decades, India has had a near stranglehold on the world's software development outsourcing. Cheap labor and an ample supply of skilled tech workers have seen to that. But things are changing.

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Published 16 October 2016
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Language English

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3 Things That Suggests It's Time to Go Nearshore For decades, India has had a near stranglehold on the world's software development outsourcing. Cheap labor and an ample supply of skilled tech workers have seen to that. But things are changing.Nearshore software development is emerging in many parts of the world, causing software development companies in India to rethink their business models. All of that notwithstanding, is it wise for an American company currently outsourcing to India to continue doing so? Could that company do better by embracing the nearshore software development model? Perhaps. Much of it depends on what the company is now doing and how current practices impact future goals.
Here are three things that suggest it is time to abandon offshore outsourcing in favor of the nearshore model: 1. Cultural and Language Barriers Dealing with offshore outsourcing partners sometimes includes having to overcome cultural and language barriers. Language is not so much of a problem for American companies outsourcing to India, but culture is something entirely different. We are worlds apart in so many aspects of business culture. The advantage of nearshore software development is that nearshore partners tend to have business cultures more closely aligned with the companies they serve. For example, the culture in Mexico is a lot more similar to the American business culture than India, even if it's not identical. Eliminating as many of those cultural barriers as possible makes a partnership that much better.
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2. Frequency of Travel There is no doubt that the explosion of the internet has somewhat alleviated the need for excessive international business travel. But companies are rediscovering the value of face-to-face interactions, so much so that American companies are increasing their travel budgets with every passing year. More travel is an excellent reason to seriously consider nearshore software development. It should be obvious that traveling from the U.S. to Mexico or South America will be cheaper than traveling overseas to India or Asia. Everything from flights to accommodations will be less expensive under the nearshore model. 3. Dealing with Time Constraints More than one American company has embraced the nearshore software development model based solely on time constraints. In other words, working on a project with a very tight deadline can be challenging when a company's outsourcing partners are in India or Asia. A simple e-mail exchange with an Asian could take days due to the time difference. With the nearshore model, those kinds of problems are largely eliminated. American companies partnering with nearshore providers in Mexico have a maximum of three time zones to deal with. So while there may be a delay of a few hours, most things can still be accomplished within a 24 -hour window as opposed to having to wait 48 to 72 hours for partners overseas. Keeping Things Closer to Home Some have suggested that India's stronghold on software development outsourcing is weakening because companies in that country have focused too much on the bottom line and not enough on quality output. Whether that's true or not remains a matter of debate. What cannot be debated is that keeping outsourcing closer to home is proving to be a much better business model. Nearshore software development helps to keep language and cultural barriers to a minimum. It reduces the time it takes for American companies to deliver because they are not dealing with partners in drastically different time zones. And finally, the nearshore model reduces travel budgets considerably. If any of these things are important to the future of your company, it might be time to leave behind overseas outsourcing and embrace the nearshore model instead.
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