How to Choose a Nearshore Development Team

Nearshore development teams can be a great asset for companies facing trouble overcoming hiring difficulties in engineering and IT locally. Nearshore software development is becoming increasingly popular in the globalized economy. However, it can be challenging to find the right nearshore development center for each company’s needs.

Each business and industry have their own specificities and demands when it comes to developing projects. To some, it might be more beneficial to outsource and end-to-end project, while other might be looking for a collaborative project, in which constant communication is key.

In this article we will discuss the different benefits and approaches to nearshore development teams in order to ultimately help you make an informed decision.

What is nearshore development?

Nearshore software development is when a company outsources development teams in neighboring countries that are in a similar or the same time zone. For a European country, for example, it is common to nearshore in Portugal or to nearshore in Poland.

Clutch has reported that 90% of small businesses in the U.S.A. were thinking about outsourcing in 2022, being that 27% of all outsourced services are in IT and an additional 21% are development services. Additionally, Clutch’s reports state that 21% of small businesses intended to hire a nearshore development team, an increase of 15% compared to 2021.

Tips for Finding the Best Nearshore Development Team:

In the words of Filipe Monterroso, Prime Nearshore’s Head of Business Development: “In a market as competitive as IT, a lot of companies have the daily challenge of achieving ambitious objectives for which they need to increase their teams. In that sense, they are faced with either lack of budget or lack of people, being that in both situations we present three different flexible solutions:

Team extension, which means hiring either consultants or specialized teams to increase the client’s team.

Team as a service, which encompasses creating specialized teams from scratch, chosen with the client to develop specific projects, that the client would not have the capacity to develop in-house.

Managed Services, which involves developing projects with dedicated teams with total responsibilities, in which we control the delivery of KPIs and SLAs defined with the client.

This allows us to adapt when it comes to the autonomy level that our clients want, being that in every one of our team models, our Delivery and Management teams, offers daily follow-up to ensure that we are matching their expectations.”

Adaptability and customization should both be qualities you look for in a nearshore partner, so that the strategy can be easily adapted to your project.

Identify your Project Requirements

Before beginning the research for the perfect nearshore development team, it is essential to define project requirements.

To narrow down your research and find a nearshore team that is suited for your project, you should look into: the technologies you project will require, the skill set the development teams should have, the level of expertise you require, and the specific methodologies you want the team to use, whether it be on development issues or regarding manageability.

Research Potential Nearshore Providers

Once you have defined your project’s requirements, the next step is to research and shortlist potential nearshore development companies.

It is important to be well-informed and to do research before selecting a nearshore provider. You can start by conducting research online for companies that are aligned with your requirements.

An interesting approach might be to look into the advantages of nearshore and look into what popular nearshore destinations best match the ones that are most important for you.

If a skilled workforce is your priority, not disregarding on-budget solutions, nearshore in Portugal might be a good option for you, as Portuguese engineering universities are among some of the best in Europe.

Evaluate Experience and Expertise

When doing research, it is crucial to look through the companies’ website and portfolios. Asking for referrals from colleagues or industry players who have also worked with nearshore development teams.

Look for technical qualifications, certifications, and experience. For example, at Prime Group we use Codility as our technical validation tool.

Look for Communication and Cultural Alignment

Once you have narrowed down options from your research, you should conduct meeting and interviews to assess communication skills, expertise, and project management abilities.

Communication is vital when it comes to nearshore software development and to any outsourcing service.

You should make sure the development team you choose has a good command of the English language. For example, Portugal and Poland, both highly procured countries for software development, have a high fluency rate of English. Checking for work hours is also an important point to make, to make sure time zone overlap.

Nonetheless, cultural alignment should also be on your list to look out for. Compatibility between teams and values is essential to guarantee a good workflow.

Determine Project Management Process

Effective project management skills are essential for the success of any development project. Before selecting a nearshore development team, you should evaluate the team’s project management methodology and make sure that it aligns with your company’s.

Important factors to look for are transparency, communication, and collaboration during the project’s course. Security should also play a factor in this concern, security measures are key, especially in IT projects that involve sensitive information.

What are the benefits of nearshore development teams?

“Nowadays, with over 16 years of experience on the field and with the development of HUBs in Brazil, Portugal, Poland and Vietnam, we can give a more competitive and agile answer to each of our clients’ needs.”, says Filipe Monterroso.

Nearshore outsourcing comes with several benefits. When choosing a nearshore partner, it is important to select the ones that are most important to you, so that you can make the best decision for your project’s needs.

Cost-efficiency

Nearshore development teams allow lower labor cost then hiring in-house teams or outsourcing to onshore teams for some European countries.

For example, if cost-efficiency is the most important factor in your selection of a nearshore provider, you might want to look into nearshore in Poland, as the polish government offers tax incentives for nearshore businesses, which allows rates to be lowered.

Skilled professionals

When you are nearshoring services, you have the advantage of being able to choose a country with highly qualified professionals for lower rates. Additionally, when you choose to outsource, you can choose specialized companies who are trained in specific areas, such as IT.

Geographical proximity

Geographical placement is a strong advantage of nearshore vs offshore, as it allows companies to outsource to other countries without sacrificing proximity.

Look into nearshore in Portugal or in Poland, for example. Both countries’ locations are strategic when it comes to Europe. One is in the heart of the continent, while the other is right off its edge, what makes them accessible to a large quantity of other players.

Time-zone similarities

This is another point in which nearshore overcomes offshore. Time zone overlapping is an important aspect in cooperation and allows teams to work more closely.

 

Team scalability

As a project moves along it is usual for the need to scale up or down to arise. Outsourcing to a specialized nearshore company allows your project to adapt as it evolves without your company having to abdicate core business focus.

When choosing a nearshore development team it is important to bear in mind that there is no right or wrong answer. Variables change depending on sector, industry, and project.

Moreover, it is important to look into your priorities as a client. What do you value the most when developing a project and what are the values that you, as a company, want to maintain? For some this might mean cost-efficiency, to other skilled professionals with high degrees of education, for others even communication and alignment.

Want to hear about our Nearshore offer? Get in contact!

Key-takeaways

Nearshore development teams, are outsourced development teams in neighboring countries that are in a similar or the same time zone.

Nearshore software development is increasing in popularity, especially for small businesses.

Tips for finding the best nearshore development team include identifying project requirements, researching potential nearshore providers, evaluating experience and expertise, looking for communication and cultural alignment, and determining project management process.

Nearshore development teams are beneficial for companies of all sizes and industries. Some of their advantages are adaptability, customization, access to skilled workforce, and cost-effectiveness.