Nearshoring services are provided by special teams or companies located at another location of your company. As the word "near" implies, these services are close to your company's location, usually in a nearby country. Nearshoring services became popular back when the Covid-19 pandemic caused everyone to work from home, but a remote development team provided by a nearshoring vendor isn't a new approach. The most common nearshoring services are software development, robotics, cybersecurity, analytics, data, human resources, accounting, logistics and business intelligence.
👉 If you want to learn more about nearshoring in software development, read our blog ''What is Nearshore Software Development''. 👈
Any company, from start-ups to large enterprises, can use nearshoring services.
As a newly established company, a startup usually has only a few employees, a small budget and not enough office space. Under these conditions, nearshoring offers startups the opportunity to hire professionals with lower salaries without incurring additional costs for offices and equipment, as nearshoring teams have their own. Since the provider's recruiters search for candidates, organise initial interviews, place test assignments and hire employees, nearshoring saves your company additional time and money during the hiring process. In addition, if you compare the salary of a developer in the Netherlands and in Serbia, you will be surprised how much money you can save with nearshoring services.
Medium and large companies have recently had a problem with the limited pool of professionals, and expanding the teams is a priority for the company's growth. Moreover, the prices of experts, labour costs and taxes are high in some countries due to the developed economy, so companies need to outsource remote teams to save costs. By outsourcing, they get the same quality, shorten delivery time and reduce their costs. But nearshoring offers more control than other types of outsourcing because companies have full access to the software development team.
Nearshoring services give you more control over the technical details, meetings with your team and in-person visits, and constant reports and feedback from your remote developers.
They decided to form a deep partnership with Typeqast, and together we built a tailor-made solution for all the IT needs of the company. We sent in an Enterprise Architect to overhaul their entire IT process and workflows and built multiple agile teams for Alphacomm’s product lines. Each product line had its own unique needs and challenges which were identified and addressed as appropriate.
Choosing nearshoring services instead of in-house teams or offshoring can be very beneficial and profitable. Hiring a nearshore development team can be the key to growth and progress for your company.
Nearshoring gives you the opportunity to work with global talent that can help you build business authority and stand out in the marketplace. Every market needs fast, innovative and fresh solutions. Using external experts provides you with a wide range of knowledge, creativity and new praxis. Compared to other types of outsourcing, nearshoring services solve many constraints, such as time, budget and efficiency. Therefore, the main advantages of nearshoring for companies are:
Setting up an in-house infrastructure can take months or even years, especially if you are doing it by yourself. On the other hand, when you are nearshoring services, they already have infrastructure and experts, so they are able to start in a matter of days.
When it comes to new business projects, building an internal team is sometimes inefficient. It can leave your employees overworked, which affects the quality of their tasks, or redundant because there are not enough tasks for them. By nearshoring certain tasks, you can scale the tasks you want your nearshoring company to handle in near real-time.
If the nearshoring team is in the same time zone or 2-4 time zones difference like you, it is likely that they are also familiar with your culture, language and customers. In addition, nearshoring allows companies or individuals to operate their external teams during the same working hours so they can respond as quickly and efficiently as possible.
Geographic proximity provides the opportunity to collaborate in real-time, which allows for high-quality face-to-face communication, timely decision-making, and ease of workflow. For example, Europeans are more familiar with other parts of Europe in terms of language, vacations and culture than with far-off countries such as Asia or America.
Working with a nearshoring team can be a very convenient solution for companies in economically developed countries, as it is very expensive to hire skilled workers or even to find them due to the shortage of professionals. Apart from lower salaries, with nearshoring teams, you have no costs for premises, equipment or personnel, as all this is provided by the nearshoring vendor.
If we consider that companies from Germany or the Netherlands have to pay about $90,000 per year for internal IT experts, it is clear that you can pay almost 50% less for a professional team from Serbia or Croatia, where the standard of living is lower.
Nearshoring services can help your company in a variety of ways, from business expansion to cost savings to working with experts and high-tech technologies. To be successful with nearshoring, there are a few things to keep in mind:
- Find a suitable and experienced nearshore provider,
- Maintain clear, real-time communication with your remote team,
- Define an action plan, milestones and goals you want to achieve,
- Build trusting and strong relationships with your remote team
As a nearshoring company with a long history of working with remote teams, Typeqast has valuable experience and knowledge. Nearshoring with Typeqast gives you all flexibility so your team can easily downsize or upsize as needed. Typeqast has nearshoring teams all over Europe and offers you the possibility to hire different types of experts for different projects.
Book a meeting and get all the information about how Typeqast can help you improve your business through nearshoring services.