Nearshore Software Development – The Benefits of Nearshoring for US Companies

In the business world, nearshore software development, or simply, nearshoring outsourcing, refers to the use of another business for certain activities that are close to home. In other words, it is the same thing as traditional outsourcing, only the companies that are being outsourced to, are in a close vicinity to the country in which the company that hired them is located. For example, suppose a small software development firm in the US wants to find another company for IT outsourcing purposes. It would not be unheard of in this particular industry to outsource that type of work to India or China. If the US based company instead goes with a company from Mexico, then that would be an example of nearshore outsourcing.

So what would be the benefits of using nearshore outsourcing for your company’s information technology outsourcing? In other words, why nearshore? There are actually several reasons why nearshore software companies might be preferred. Here are some of the benefits of using nearshore development companies. One of the main reasons why this is commonly done is cost reduction, which may sound strange at first. After all, being cheaper was one of the main reasons why IT outsourcing, as well as outsourcing in other industries, caught on in the first place.

Nearshore outsourcing is actually less costly for a few reasons. Although traditional outsourcing was supposed to reduce costs, many times, additional unforeseen costs later surfaced, making it not that cheap after all. Using a nearshore development firm will allow a US company to save money on things like travel expenses, having to redo some of the work performed because the workers didn’t understand what was required and telecommunications expenses. Another benefit of using a nearshore software development company has to do with better efficiency in the workplace. If a US based company decides to use India for its information technology outsourcing needs, the differences in the time zones can cause a big headache for project managers. Having a nearshore software development company in the same time zone as your company will eliminate the time difference issue.

And finally, another benefit to nearshore outsourcing rather than the traditional IT outsourcing has to do with differences at a cultural level. A US based company and a company based in India are going to have more cultural differences than say a US firm and a company in Latin America. That’s not to say that there won’t be any culture clashes, but just not as many.

These are just some of the main benefits of working with Nearshoring IT firms. You can find many different firms working in Mexico, one of them is Sieena.

Since 2004, Sieena, a Microsoft Gold Certified Partner, has provided comprehensive IT support and nearshore software development services, including Rich Internet Applications and customized SharePoint deployments. The award-winning Sieena development staff has built and maintained business-critical Web platforms for small-to-medium businesses up through large multi-national corporations. To learn more about how Sieena can meet your software development goals, e-mail us at contactus@sieena.com or visit our Web site at www.sieena.com.