Monday, March 7, 2011

Nearshore Software Development Outsourcing Is Becoming More And More Popular

By Petr Kudlacek


Many businesses today are seeking to keep their work closer to home when it comes to outsourcing. Due to the increasing price associated with outsourcing, and a myriad of other reasons, when it comes to creating websites or programs, many businesses look into nearshore software development. Unlike the traditional method of outsourcing, jobs are propelled toward countries within close proximity. For instance, the United States has been sending more work to Canada and Mexico rather than India.

One of the major benefits of this form of outsourcing is that the time zone is the same or an hour in front or behind. When having software developer work for a company, it is necessary to remain in constant contact; it can be difficult when that person is six hours ahead. A large time difference can impact productivity.

Traveling to the outsourced company is always likely. There are some tasks that necessitate face-to-face meetings rather than phone calls and video conferences. The traveling is made easy when the country is closer.

Work can be impeded by cultural differences. When two countries are a lot further away, the cultural differences get larger. It can make communication a lot more difficult when business transactions need to be completed.

Budgetary concerns need to always be at the forefront. When hiring an outsourcing firm, it is because the business does not have the funds to hire in-house. However, large sums of money will be spent on travel expenses, communication expenses, and overtime expenses. In the end, is there really any money being saved?

But cost does not just mean price, but other costs as well. The cost of interaction with a nearshore software development company goes down. The cost of extra hours and extra work goes down due to close geographic proximity.




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