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Nearshoring Software Development – The Benefits

January 9, 2023
2 min read
Nearshoring Software Development – The Benefits

Nearshoring Software Development – The Benefits

Heard of the term Nearshoring? It essentially is the practice of transferring a business operation to a nearby country, especially in preference to a more distant one. As the need for custom software development companies grows, companies in Europe and further afield are looking further afield than just their neighbours to get good quality software development completed on time and on budget. It is becoming increasingly easier to work with software companies that happen to be thousands of miles away. Here’s why:

Nearshoring in Similar Timezones

First of all, if you’ve ever worked consistently with someone more than 4 hours either side of your timezone, you’ll understand the challenges of getting maximum productivity out of the working relationship. Whilst it maybe easier when you have smaller teams of 2 or 3, you really feel the crunch when the skillsets are fragmented across the timezones and teams are greater than 4 or 5 people.

Nearshoring has the benefit of usually being a maximum of 2 to 4 time zones away, making working between teams slightly more convenient. SovTech teams, in our offices across four cities and two continents align well with most companies in Europe.

Nearshoring is the new offshoring
Nearshoring is the new offshoring

Nearshoring Is about 40% Cheaper

When compared to US benchmark salaries, nearshore typically provides a 40% decrease in costs. The average developer salary in the UK sits at $160k per annum, and the equivalent nearshoring skillset could be sought at $70k per annum- this according to a 2018 study by Acelerance.

By eliminating employee overhead costs, you’ll decrease your fully-burdened cost of any employee benefits, taxes, paid time off, company perks, training and retention. If you use a service like DaaS, you will also be able to scale up and down your team at strategic points of your project.

“DON’T JUST SELECT THE CHEAPEST NEARSOURCING PROVIDER. PICK A TEAM YOU’D LIKE TO WORK WITH IN THE LONG TERM.”

Cultural Similarities Help Nearshoring

It may be easier to find cultural similarities when looking closer to home. As language becomes more important due to the stresses of limited communication mediums, it’s important if you are going to work with a partner team to try and align on languages.

Distant cultures and skype-trodden language barriers can often lead towards miscommunicated strings of national holidays and misinterpretations of technical directives. Being able to speak to someone who is fluent in your native language is invaluable when compared to the technical debt it can save you down the line.

As digital communication mediums become increasingly effective, and the likes of Zoom Rooms make group conference calls more enjoyable, SovTech looks to take advantage of nearshoring as Africa sits perfectly aligned with the UK and the rest of Europe.

Speak to us today about how we can work together with your team to deliver your custom web and mobile apps.

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