Any modern business nowadays could exist without specific software solutions that help to monitor and optimize business processes. When it comes to large enterprises or even medium-sized businesses that are quickly expanding, it mostly refers to personalized or even custom-designed software systems that are focused on covering specific needs of such companies. But the problem is that custom-designed software often can’t be created with the resources of an in-house development team — if you even have any. So, the only option is to hire a third-party company that will do it for you. The problem is that such a project is time-consuming, complex in implementation, and requires permanent communication between teams — both in-house and outsourced developers.
Thus, some companies are interested in establishing a nearshore software development center. The question is why a nearshore software development unit is preferable? That’s what we are going to answer in this topic.
What is a nearshore business software development center?
A nearshore software development center is a separate unit, that is, in most cases, hired from the IT outsourcing company and consists of developers, QA engineers, development operations specialists, and other professionals who are involved in the software development process to build software solutions for a company that hired the team. Nearshore in this case means that such a unit is located in a country that borders the country of the customer company.
Such development centers do not always focus on development only. It can also include specialists who provide other services — marketing, project management, PR, brand management, SEO, DevSecOps, and so on. The range of services is limited only by the technical specification and demands of the customer.
Why should you choose a nearshore development center?
Nearshore outsourced software development centers have a few benefits over outsourcing the project to companies from far abroad, including:
- No timezone lap. It is sometimes difficult to work with a team that is located a few time zones away from you, which creates certain communication difficulties and makes instant communication problematic.
- No major cultural dissimilarities. Even though all cultures are unique, working with a team from a nearshore country makes it much easier to pass through these dissimilarities and makes communication smoother.
- Opportunities for personal communication. Arranging a meeting with developers who are located 300 kilometers away is easier than with those who are 1500 kilometers away, isn’t it? That’s why selecting a nearshore software development center is a great option.
When do you need a nearshore software development center?
Some precise signs indicate that you require a separate software development center nearshore:
- The complexity of the project. When you need more than a dozen of different specialists to get your project done, it’s better to allocate a separate department for them.
- A need to set up an entire infrastructure. If you want to set up your own cloud or, what’s even more regarding in this case, on-premises solution, a nearshore team would be preferable.
- A need for maintenance. If your solution requires permanent maintenance and upgrades, a nearshore software development team is a good choice.
- If the project has to be regularly monitored. If you want to keep an eagle eye on all development processes, a nearshore team is the only way to get done with this.
What do you need to get a nearshore software development center all set?
Setting up a nearshore software development center isn’t a simple task. It requires patience, research, and a lot of communication with your partners — future developers for your business.
- Select a location. As it is a nearshore unit, you should consider which country offers better options for your case. You can search for developers, compare prices, cases, and also the conditions of cooperation. Remember that legal requirements to agreements may also vary from country to country, as well as business culture.
- Get a legal consultation. You have to understand potential pitfalls in legal aspects of your partnership with an abroad team, as well as you need someone who will help you to design and sign an international agreement that will secure your interests.
- Get dealt with taxes. You should understand that if you operate as a legal entity in another state, you have to pay taxes — obviously different from in your country — as well as the processes of communicating with the tax department of the country.
- Establish the center itself. You have to decide, whether your team will be working from one office or remotely, or in hybrid mode. You can also ask whether they have their own facilities to work in.
- Agree on technical specifications. Before you start, you have to make sure that everything is clear about the technical specifications and expected result of the project so you won’t have any problems at the end of the path.
Conclusion
Hiring nearshore developers and setting up a nearshore software development center is a good option to cut costs on software development and ensure success. Nevertheless, it is not an easy task to deal with — you will face security, legal and other risks during this process.
To eliminate risks, you have to work with reliable developers who have relevant experience in such internation projects and can prove it transparently. We have a suggestion for you — N-iX is a reliable and trustworthy internation company that offers services of establishing nearshore software development centers, even for enterprises from Fortune 500 list. Moreover, they have their developers located in many different countries, so you have options to choose.
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