The Definition of Nearshore Software Development
Remote software development by definition means remote collaboration with customers. In IT the term Nearshoring is associated with outsourcing companies, often located in other countries. Nearshore software development allows the company to reduce the cost of implementing its ideas. Basically, the lower development cost using Nearshoring is related to the lower salary in the country where the outsourcing company is located, in contrast to the payment in the country where the customer is located. Ukraine has earned the reputation of a country with a large number of outsourcing companies. Click on the link for more information on the Ukrainian Nearshore software development.
The Main Benefits of Nearshore Development Company
Nearshore development company is currently in demand. The scheme of Nearshore software development allows any company to hire remote software developers when they are required. If specialists in a particular field are needed now, the need for their services may not be needed after a while. Nearshoring also saves time in finding the right specialist. Outsourcing processes expand the range of search for both the customer and the software developer.
Possibility for Remote Development From Different Places All Around the World
With the rapid increase in the popularity of Nearshoring, it became possible to hire a developer even from other continents. In one country, software development is done by, roughly speaking, one principle. By hiring a remote developer, companies bring fresh ideas to their product. Service NearShore Technology published statistics on outsourcing enterprises and companies. According to their data, the largest number of people providing outsourcing services is in India, 1.43 billion people. It is worth noting that this number includes both nearshore manufacturing and nearshore programming.
The Most Important Reason to Nearshoring is Lower Price
Of course, a lower price for the software developers is an attractive condition for the customer company. Why pay more, if the same quality can be obtained by spending fewer resources? Especially popular is nearshore web development in the sphere of IT.
Time Facilities of Nearshore Software Development
The company owner of a custom application, which prefers outsourcing cooperation, is likely to hire dedicated developers of Nearshore company. In case if a company needs to periodically meet or negotiate with the developers, it is the Nearshore outsourcing that is best suited. Usually, Nearshoring companies cooperate with countries located in the neighborhood, or nearby, with a small time interval. Thus, the customer and Nearshoring company will be able to conduct Internet meetings with their customers without any overlap, which is beneficial for both parties.
Nearshore Software Development Would Be Better Solution in Particular Cases
Certainly, long-term and even centuries-old practices of businesses show that full-time employment has its advantages. But, the development of technology shows that outsourcing cooperation also has its pros. In some cases, outsourcing even wins.
Companies Аocused on the Audience of Other Countries
Assume there is a company with its developed software, and it is going to expand its target audience to other countries. A company that employs workers only for a full-time job will have difficulty adapting its product. The Software development project management of our imaginary company will face the problems of finding the right personnel. After all, for competent software adaptation, it is necessary to understand the user, his culture and preferences. Cooperation with the Nearshore developers of an oriented country will be a competent and cost-effective solution.
The Cost of Hiring a New Employee
Even if an imaginary company is not going to orient to the international market, finding and employing the right and suitable worker can take a lot of time and efforts. In one of the articles of The Huffington Post online edition in April 2017 was published a study including calculations of the company’s expenses for the reception of a full-time employee and a freelancer.
Brief Description and Result of Calculations
The prospective situation of the research was such that an imaginary company needed to hire a new person for a project, the development of which would take one year. A full-time employee was examined with software developer salary of $ 135,000 per year and freelancer with a reward of $ 150 per hour. The calculations took into account the real hours of staff training for the year, despite vacation days. The cost of a freelancer was limited only to its actual hourly pay. In the case of a permanent employee, the expenses were added, of course, for the Payroll tax. The cost has amazedly increased given the costs of recruiting and training. Always a new employee in the company needs some time to settle in a new work environment. The expenses for insurance, equipment and place in the office, money resources spent on vacation payments, sick days, and other bonuses were also taken into account. As a result, the difference in the company’s money spent on a new worker was almost $ 20,000 per year. Of course, it is cheaper to work with a freelancer.
The Advantages of Nearshore Software Development Sound Convincing
At the very beginning it was already stipulated, what is nearshore software development. Nearshoring is a terrific opportunity for Nearshore software development companies as well as for their customers. Nearshore software programming would be a profitable economic solution for the company in some particular cases. If you are looking for modern Nearshore software developers – hire a dedicated team of developers from Mobilunity.