Nearshore Development Team: Pros and Cons

Every business is looking for ways to get better results while investing less. No doubt, so is yours. That is especially true for the IT industry, where qualified employees are in high demand, and salaries are constantly growing.

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Fortunately, an IT software company today can solve this problem – just outsource programmer or hire a nearshore development team on a project or long-term basis. A dedicated team of remote developers may seem like a perfect solution, but there are always pros and cons. Let’s have a closer look at the nearshore team advantages and drawbacks and figure out how to handle the latter.

Nearshore Team Advantages

Less Investment

Obviously, what attracts European and US businesses about offshore software development services is the difference in costs. Offshore developers in Eastern Europe are ready to work for rates that are often twice lower than what their EU or US colleagues charge. Maintaining offices is much cheaper, too, so even given the occasional travel expenses, you can still save up to 50% on development.

Qualified Developers

Lower costs don’t have to mean lower quality of work or worse qualifications. Post-Soviet area offers a vast talent pool of developers, who have a strong academic background and are ready to invest time in improving their skills. Countries like Ukraine are rapidly growing as IT locations, and each year even more young people pick programming as a career.

Possible Tax Savings

Governments of major IT outsourcing countries are trying to support the industry by favorable taxation laws. That’s why many businesses also see offshore software development services as a possibility to reduce the taxes they pay.

Longer Hours Due to Time Difference

Many businesses with outsourcing experience report that the time difference can actually be a benefit if the efforts of the in-house developers and the nearshore development team are combined. With a time difference, the offshore developers can start several hours earlier or leave work a few hours later than your onsite programmers. That way the work on your project continues more than 8 hours a day, and it can be completed faster.

Nearshore Team Disadvantages

Communication Problems

The language is the first thing that comes to your mind. Eastern European developers, who want to work for Western companies, always speak some English, from basic to fluent. But if English is a foreign language both for you and your remote developers, some things may be lost in translation. Plus, the lack of face-to-face communication doesn’t make understanding any easier.

Technology Differences

If you hire remote developers, it may turn out that the hardware and software they have at hand are not sufficient. Coding standards and practices, the way project documentation is handled, project management practices may differ from country to country. If that happens, you will have to spend some time educating the nearshore development team on your company’s policies and practices.

Cultural and Life Differences

Offshore developers live and work in a different environment. This difference in cultural and life experience can influence their work: for example, your developers may have a difficulty understanding your potential user’s behavior if that is something beyond their realia. This misunderstanding can stand in the way when they are looking for an effective solution.

The Time Difference

Surprisingly, the time difference can be both an advantage and a drawback. If the difference is 8 hours or more, it can be challenging to communicate with your remote developers properly. Most programmers will be unwilling to work irregular hours so that you could communicate with them easily, so it’s better to choose an outsourcing location that is closer to your time zone.

How Do You Handle the Nearshore Team Disadvantages?

Most often offshore software development services will still have more pros than cons for your business. And the disadvantages can be handled with a little effort from your side, or professional help of a nearshore staffing partner. Companies like Daxx help Western companies hire remote developers who have experience working for European IT businesses. Due to this experience, Daxx’s offshore developers are more familiar with European programming practices and speak good English. Besides, a nearshore IT partner will provide the necessary hardware and software tools and facilitate communication with remote collaboration tools.



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