Many developing European countries have decided to outsource their work to Eastern Europe because of their home countries' lack of IT specialists. To succeed with nearshoring services, it is extremely important to choose your nearshore IT partners intelligently.
In this article, we explain what nearshoring is and show from practice why IT employees from countries like Croatia and Serbia are ideal nearshore partners.
Nearshoring is the outsourcing of business processes to specific companies that are geographically close to your country. As the word "near" implies, nearshoring companies are located in countries that are in close proximity to your company's location. This allows companies to move their operations to a cost-effective location where the time difference between two companies should not exceed 1 to 3 hours.
In addition to nearshore, there are also offshore and onshore outsourcing models. Onshore means you outsource a team that is located in your country but not in the same city, which can be slightly cheaper than an in-house team when travel and office costs are taken into account. Offshoring, on the other hand, means fully employing a team from a distant country, usually located on another continent. Even though offshore is cost-effective, this model has a lot of drawbacks in terms of time zone differences, cultural and social barriers, communication issues, and security. Therefore, nearshore improves many of the limitations of offshoring and onshoring.
Nearshoring can boost your business if you choose the right time, outsourcing company and the most suitable country. There are many nearshore hubs in Poland, Ukraine, Serbia, Croatia, Romania and Bosnia and Herzegovina. And, all of them differ in terms of hourly rates, education, and English language skills.
Here we show you why you should partner up with IT staff in countries like Croatia and Serbia.
Serbia and Croatia are located in Southeastern Europe, which means that these countries can be reached in 2-3 hours flight time from all major European cities. 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. In addition, these countries are more familiar with other parts of Europe in terms of language, vacations and culture than far-off countries.
If you choose IT partners from Serbia and Croatia, you can be sure that communication between clients and companies will be at a high level, because these experts have a very good command of English. Therefore, they can communicate fluently and easily to understand their work tasks and goals. In these countries, English is an elementary part of the school system and is taught from an early age. Moreover, English is considered an easy language to learn, especially knowing how difficult the native languages of these countries are.
Universities in Serbia and Croatia have well-known technical faculties that produce numerous talented, ambitious and highly qualified IT specialists every year. As the article in Financial Times points out, Belgrade's tech industry is growing fast, which is the reason why there are more and more tech companies.
Well-known tech giants like Microsoft and Ubisoft have their centers in Serbia and Croatia, but thanks to numerous qualified IT specialists, these countries also produced famous domestic tech companies. In addition, many students have the opportunity to gain work experience during their studies, as there are many different conferences, training and practical work that encourage and motivate young people in the field of IT.
With good education and the English language, there should be no doubt about the quality of work of experts from Serbia and Croatia. However, cultural similarities and similar work ethics also have a great impact on the quality of work. Working with someone who has a similar culture to you is always beneficial because misunderstandings are avoided and communication is clear. When you partner up with teams from these countries, deadlines are always met and professionalism is at a high level.
Working with a nearshoring team from countries such as Serbia and Croatia 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 appropriately skilled workers due to the shortage of professionals.
For example, 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. So, you get below-average prices for high-quality products.
Nearshoring offers you the opportunity to work with global talent that can help you build business authority and stand out in the marketplace. Using external experts provides you with a wide range of knowledge, creativity and new processes. Compared to other types of outsourcing, nearshore solves many constraints, such as time, budget and efficiency. And when it comes to choosing a nearshore partner, countries like Serbia and Croatia can have a positive impact on business growth, workflow and overall productivity.
Typeqast is a nearshoring company that has a long history of working with remote teams from Eastern European countries. So we are sure that with us you can find a multidisciplinary, experienced, agile team of experts from different fields. Book a demo and learn more about the benefits of nearshore.