Covid-19 hit us hard; many companies lay off millions of employees. Cutting expenses was the new normal but cutting development costs can be critical to many companies. However, cutting IT comes with a higher price, and avoiding in-house development can easily save a lot of money. On the other hand, outsourcing can prove as a great cost-effective alternative. Companies can opt for remote IT support and other services as the most effective solution to the issue.
What is the benefit of outsourcing, you may ask?
The use of outsourcing allows companies to leverage their resources to strengthen their competitive advantage. However, this concept has not always been in the minds of managers. Thus, outsourcing has evolved from a tactical approach, which seeks to achieve results in the short term, towards a more strategic approach that seeks to consolidate competitive advantage in a long time.
Now, What do Nearshore and Offshore alternatives mean in technology?
- Offshore – refers to sourcing development far away from the place of origin. US companies often use agencies in India, China, Ukraine, and other eastern European countries.
- Nearshore – services, and labor are sent out to a geographical region near to the origin. Still, it’s not within the same borders. US companies use Mexico as the primary nearshore alternative.
Advantages of using Nearshore software development agencies
Nearshore:
- Between federal legislation and international trade agreements, including the US, Mexico, and Canada Agreement (USMCA), Mexico is ideal for creating intellectual property
- High-Quality Software
- Real-time collaboration
- Cost-efficient
- Culture match
Offshore
- Potential offshore outsourcers should consider the legal risks. Often, foreign laws are inadequate for protecting intellectual property since no specific law protects US companies.
- Typically, offshore rates are lower, but sometimes this also means lower quality, depending on the country where you will outsource your projects.
- Offshore time zones can affect efficiency and communication.
- Management Accounting Quarterly report shows that overlooking the Hidden costs of outsourcing is consistently one of the top reasons outsourcing arrangements fail.
- While the U.S. and Mexican workforce cultures may not be an exact match, these countries’ proximity makes the cultures similar.
Bortom is a nearshore software development agency in Tijuana MX committed to helping companies turn their ideas into realities by engineering high-quality custom software solutions.
Our lean methodology process and recruiting power are the focus; a high-caliber qualified talent that is vetted, tested, and shares the passion for developing the finest tech products.
SAVE ON DEVELOPMENT COSTS!!
