Nearshoring easily solves many challenges
Living through digitalization brings to the table new pains and problems related to the access to resources and expertise. Nearshoring easily solves many of these challenges. Hop on a journey into Nearshoring services. We'll take you through what it is, pros and cons, and the added value that our services bring to the table.
About SHE Cluj
With more than 100 experts in Cluj-Napoca, you can realize your digitization projects. For over 10 years, cross-industry tailor-made solutions have been developed here. With capabilities in areas such as IoT, Security, Healthcare, Business Intelligence and Web Development, SHE is being trusted by clients like BASF, ZF Friedrichshafen, Solarlux, Swiss Life and many others.
Discover the full range of IT services offered by the SHE Group
Reach your business goals
Our digital era requires competent and competitive IT skills able to respond to the increasing exigencies of clients and digitalization. Companies, no matter their dimension, are doing their best to overcome these challenges, serve their customers better and reach their business goals.
IT German companies are no exception. As of 2020, Germany counts over 100,000 technology companies, 1 million-plus employees, more than 230 billion euros in revenue, and about 7 % of the country’s Gross Domestic Product. It is the largest European software market, with an expected annual growth rate of 4,65% until 2027 and a market volume of $41,58 billion by the same year.
Overcome inherent challenges
To support such expansion the German software market needs a constant flux of talents to support its development. As such, German companies should make use of creativity to identify the best solutions for their software-related issues and overcome inherent challenges.
The shortage of German IT talents, the lack of sufficient IT management capabilities, high costs with IT departments, human resources difficulties in identifying and attracting the right candidates are just a part of the problems that German companies face today. For example, finding a senior C# developer with iOS development skills is usually quite problematic or identifying the right Senior Software Architect with communication, project management, client-facing, and team management capabilities.
Easily externalizing operational task
What is nearshoring? As the name suggests, nearshore outsourcing or nearshoring refers to the practice of externalizing partially or totally operational tasks - most often related to software development and/or various business processes - to tiers companies from the nearby region. The main reason for this maneuver is to improve costs.
Practically, the work is outsourced aboard, but in a country situated in the geographic proximity (nearshore) of the company’s location. In our European context that translates into using software engineers and developers from countries placed in the Eastern part of the continent like Romania, Poland, Bulgaria, Ukraine, Serbia, etc. Because their services cost lower than their Western European counterparts.
Pros and cons of software nearshoring
Pros
Cost optimization
Externalizing software development in nearshore locations offers significant cost reductions, as developers from these areas are by far less expensive than those onshore or in-house. And this is a major reason for moving software operations to neighboring countries.
Easy on-spot collaboration
Agile nearshoring for software development involves locations that can be reached by plane in a few hours. Thus, the client’s employees can fly to the outsourcing location in a short period of time and with relatively small money expenses.
Improved efficiency
It depends, of course, on the quality of the service delivered by the nearshore partner, but for most companies, it results that using nearshoring improves the price to value ratio and the overall efficiency. As the price paid is lower, and if the productivity is at least average, the benefit is evident.
Language compatibility
English is the international language of software development. In most cases, the client organization will partner with English-speaking developers in nearshore countries or with developers that speak the client’s native language.
Cultural affinities
People in neighboring countries have more or less similar cultural norms and work approaches. For example, for a German company, it is a better option to work with Romanian or Polish developers that have a somewhat similar European culture, than to work with Indian developers. Bonus: Similar time zones and overlapping of usual business hours.
Cons
The majority of work is executed remotely
Even if the pandemics brought the democratization of remote work and it became the norm, some organizations may still prefer to have face-to-face communication or a person from the nearshoring partner on the spot. And that implies costs with traveling or accommodation.
But, it’s a fact that 100 % remote projects are highly successful and the communication tools available today facilitate this type of collaboration. Tools like Slack, Zoom and Webex, shrink the necessity of traveling to be on the same premises as the development team. Not to mention that occasional visits to a nearby location are by far less expensive than hiring new IT specialists.
Anyway with the right partner, nearshoring seems to be a winning solution for most companies that try it.
Choosing SHE will:
- Reduce your costs heavily with software development
- Enrich your IT team in a matter of weeks
- Allow you to profit from our over a decade of nearshoring experience to hasten implementation and efficiency
- Reinforce your business by incorporating a smart strategy like nearshoring in your business model
- Offer the flexibility to adopt various project models
- Incorporate ultimate generation methodologies like DevOps and Agile development to stimulate the software development cycles