{"id":8076,"date":"2017-07-21T21:05:35","date_gmt":"2017-07-22T00:05:35","guid":{"rendered":"https:\/\/blog.uruit.com\/?p=8076"},"modified":"2023-05-31T09:38:46","modified_gmt":"2023-05-31T12:38:46","slug":"nearshore-offshore-software-development","status":"publish","type":"post","link":"https:\/\/uruit.com\/blog\/nearshore-offshore-software-development\/","title":{"rendered":"3 Ways Nearshore Beats Offshore Software Development"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_17 counter-hierarchy counter-decimal ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" style=\"display: none;\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-1\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/uruit.com\/blog\/nearshore-offshore-software-development\/#3_Ways_Nearshore_Beats_Offshore_Software_Development\" title=\"3 Ways Nearshore Beats Offshore Software Development\">3 Ways Nearshore Beats Offshore Software Development<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/uruit.com\/blog\/nearshore-offshore-software-development\/#These_are_the_available_options_for_outsourcing\" title=\"These are the available options for outsourcing:\">These are the available options for outsourcing:<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/uruit.com\/blog\/nearshore-offshore-software-development\/#Nearshore_vs_offshore_outsourcing_-_whats_the_best_model_for_me\" title=\"Nearshore vs offshore outsourcing &#8211; what\u2019s the best model for me?\">Nearshore vs offshore outsourcing &#8211; what\u2019s the best model for me?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/uruit.com\/blog\/nearshore-offshore-software-development\/#3_major_reasons_why_US_companies_choose_nearshore_outsourcing\" title=\"3 major reasons why US companies choose nearshore outsourcing\">3 major reasons why US companies choose nearshore outsourcing<\/a><ul class=\"ez-toc-list-level-4\"><li class=\"ez-toc-heading-level-4\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/uruit.com\/blog\/nearshore-offshore-software-development\/#Cost-Efficiency\" title=\" Cost-Efficiency\"> Cost-Efficiency<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-4\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/uruit.com\/blog\/nearshore-offshore-software-development\/#Evaluating_the_best_investment\" title=\"Evaluating the best investment\">Evaluating the best investment<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-4\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/uruit.com\/blog\/nearshore-offshore-software-development\/#Skilled_Labor\" title=\" Skilled Labor\"> Skilled Labor<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-4\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/uruit.com\/blog\/nearshore-offshore-software-development\/#Top-notch_talent\" title=\"Top-notch talent\">Top-notch talent<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-4\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/uruit.com\/blog\/nearshore-offshore-software-development\/#Geography_and_Its_Implications\" title=\" Geography and Its Implications\"> Geography and Its Implications<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-4\"><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/uruit.com\/blog\/nearshore-offshore-software-development\/#Culture_other_limitations\" title=\"Culture &amp; other limitations\">Culture &amp; other limitations<\/a><\/li><\/ul><\/li><\/ul><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/uruit.com\/blog\/nearshore-offshore-software-development\/#Were_nearshore_outsourcing_advocates\" title=\"We&#8217;re nearshore outsourcing advocates\">We&#8217;re nearshore outsourcing advocates<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"3_Ways_Nearshore_Beats_Offshore_Software_Development\"><\/span><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;3 Ways Nearshore Beats Offshore Software Development&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15165,&quot;3&quot;:{&quot;1&quot;:0},&quot;5&quot;:{&quot;1&quot;:[{&quot;1&quot;:2,&quot;2&quot;:0,&quot;5&quot;:{&quot;1&quot;:2,&quot;2&quot;:0}},{&quot;1&quot;:0,&quot;2&quot;:0,&quot;3&quot;:3},{&quot;1&quot;:1,&quot;2&quot;:0,&quot;4&quot;:1}]},&quot;6&quot;:{&quot;1&quot;:[{&quot;1&quot;:2,&quot;2&quot;:0,&quot;5&quot;:{&quot;1&quot;:2,&quot;2&quot;:0}},{&quot;1&quot;:0,&quot;2&quot;:0,&quot;3&quot;:3},{&quot;1&quot;:1,&quot;2&quot;:0,&quot;4&quot;:1}]},&quot;7&quot;:{&quot;1&quot;:[{&quot;1&quot;:2,&quot;2&quot;:0,&quot;5&quot;:{&quot;1&quot;:2,&quot;2&quot;:0}},{&quot;1&quot;:0,&quot;2&quot;:0,&quot;3&quot;:3},{&quot;1&quot;:1,&quot;2&quot;:0,&quot;4&quot;:1}]},&quot;8&quot;:{&quot;1&quot;:[{&quot;1&quot;:2,&quot;2&quot;:0,&quot;5&quot;:{&quot;1&quot;:2,&quot;2&quot;:0}},{&quot;1&quot;:0,&quot;2&quot;:0,&quot;3&quot;:3},{&quot;1&quot;:1,&quot;2&quot;:0,&quot;4&quot;:1}]},&quot;11&quot;:3,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:11}\">3 Ways Nearshore Beats Offshore Software Development<\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><span style=\"font-weight: 400;\">Are you thinking about outsourcing your app development? Nearshore vs offshore is the first doubt you will need to solve. The<\/span><a href=\"https:\/\/www.statista.com\/statistics\/189795\/global-outsourcing-industry-revenue-by-region\/\" class=\"external\" rel=\"nofollow\"> <span style=\"font-weight: 400;\">global outsourcing market<\/span><\/a><span style=\"font-weight: 400;\"> earned $76.9 billion in revenue and is<\/span><a href=\"http:\/\/www.businesswire.com\/news\/home\/20170213005510\/en\/Global-Network-Outsourcing-Market-Analysis-Trends-2017-2025\" class=\"broken_link external\" rel=\"nofollow\"> <span style=\"font-weight: 400;\">expected to grow<\/span><\/a><span style=\"font-weight: 400;\"> at a rate of 6.7% from 2015-2025<\/span><b>. IT companies, in particular, have demonstrated their interest in outsourcing web and mobile application developers from abroad, along with other tasks.<\/b><span style=\"font-weight: 400;\"> The<\/span><a href=\"http:\/\/itgovernancejournal.com\/2017\/04\/06\/value-outsourcing-hard-data\/\" class=\"external\" rel=\"nofollow\"> <span style=\"font-weight: 400;\">outsourcing budget for technology companies<\/span><\/a><span style=\"font-weight: 400;\"> increased by 10.6% in 2016, and they spent $84.5 billion on<\/span><a href=\"https:\/\/www.statista.com\/statistics\/292203\/global-spendings-it-outsourcing-and-hardware-maintenance\/\" class=\"external\" rel=\"nofollow\"> <span style=\"font-weight: 400;\">application outsourcing<\/span><\/a><span style=\"font-weight: 400;\"> alone in 2015.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Not only can technology companies save money through software outsourcing, but they also benefit in other<\/span><span style=\"font-weight: 400;\">, <\/span><span style=\"font-weight: 400;\">discernible means. In order to maximize the potential of outsourcing, it is important to understand the different options available. Which one offers the services and benefits that most effectively fulfill company goals?<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"These_are_the_available_options_for_outsourcing\"><\/span><span style=\"font-weight: 400;\">These are the available options for outsourcing:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Offshore<\/strong> &#8211; refers to <strong>sourcing devs and other resource needs from a region far away from the place of origin<\/strong>. US companies often outsource to India and Eastern Europe in the offshore software development model.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Nearshore<\/strong> &#8211; <strong>services and labor are sent out to a geographical region near to the origin<\/strong>. Still, it&#8217;s not within the same borders. In the US case, it would mean <a href=\"https:\/\/uruit.com\/blog\/south-america-software-outsourcing\/\" class=\"broken_link\" rel=\"nofollow\">outsourcing to Latin American countries<\/a>.<\/span><\/li>\n<li style=\"font-weight: 400;\"><strong>Onshore<\/strong> &#8211; describes the strategy of <strong>assigning roles and services to a company located within the same geographic borders<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Nearshore_vs_offshore_outsourcing_-_whats_the_best_model_for_me\"><\/span><b>Nearshore vs offshore outsourcing &#8211; what\u2019s the best model for me?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If you are looking for iterative and Agile development strategies; cooperative development procedures; fast and easy communication; rapid prototyping; and user-centric design, nearshore is the option for you. We\u2019ve laid out the three major reasons why this is the case, and how your company can benefit from pursuing a <a href=\"https:\/\/uruit.com\/nearshore-software-outsourcing-to-south-america\">nearshore outsourcing model<\/a>.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_major_reasons_why_US_companies_choose_nearshore_outsourcing\"><\/span><b>3 major reasons why US companies choose nearshore outsourcing<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Cost-Efficiency\"><\/span><b> Cost-Efficiency<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p><img loading=\"lazy\" class=\"aligncenter wp-image-8078 size-full\" src=\"https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/uruit-julio-2015-230-e1500645883177.jpg\" alt=\"offshore vs outsourcing\" width=\"1881\" height=\"984\" srcset=\"https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/uruit-julio-2015-230-e1500645883177.jpg 1881w, https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/uruit-julio-2015-230-e1500645883177-300x157.jpg 300w, https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/uruit-julio-2015-230-e1500645883177-1024x536.jpg 1024w, https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/uruit-julio-2015-230-e1500645883177-768x402.jpg 768w, https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/uruit-julio-2015-230-e1500645883177-1536x804.jpg 1536w, https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/uruit-julio-2015-230-e1500645883177-750x392.jpg 750w, https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/uruit-julio-2015-230-e1500645883177-1140x596.jpg 1140w, https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/uruit-julio-2015-230-e1500645883177-20x10.jpg 20w\" sizes=\"(max-width: 1881px) 100vw, 1881px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">For a process like outsourcing web and mobile application development, reducing costs is often the priority. In fact, a<\/span><a href=\"https:\/\/www2.deloitte.com\/us\/en\/pages\/operations\/articles\/global-outsourcing-survey.html\" class=\"external\" rel=\"nofollow\"> <span style=\"font-weight: 400;\">Deloitte survey<\/span><\/a><span style=\"font-weight: 400;\"> revealed that 59% of businesses that outsource did so for cost-cutting purposes. In the IT sector, this number jumped to 87%.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Utilizing a nearshore outsourcing option for mobile and web development is cost-effective. Meaning this method provides advantages in both the initial cost standpoint and in its risk-averseness. There are a few factors to watch out for that contribute to the cost of delivery, as enumerated in a recent <strong>Everest Group<\/strong> study:<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Scalability<\/span><\/li>\n<li>Language skills and proficiency<\/li>\n<li>Tech skills<\/li>\n<li>Types of services<\/li>\n<li>Complexity of work<\/li>\n<li>Geography served<\/li>\n<li>Talent offering<\/li>\n<li>Choice of location<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">By hiring a foreign development team in a nation not too far from home, you can still reap the benefits of lower costs regarding all of the above when compared to sourcing onshore within the U.S.<\/span><b> Additionally, nearshore outsourcing avoids the quality concerns associated with offshore software development. <\/b><span style=\"font-weight: 400;\">Nearshoring outsourcing in Latin America is especially attractive <\/span><span style=\"font-weight: 400;\">for US companies <\/span><span style=\"font-weight: 400;\">seeking cheap outsourcing options. <span style=\"color: #000000;\">With financial attractiveness being the most important feature of outsourcing factors, a<\/span><\/span><span style=\"color: #000000;\"><a href=\"https:\/\/www.atkearney.com\/strategic-it\/global-services-location-index\" class=\"external\" rel=\"nofollow\"> 2016 A.T. Kearney Study<\/a> ranked six Latin American countries among the top 20 in fulfilling these aspects.<\/span><\/p>\n<p><img loading=\"lazy\" class=\"aligncenter size-full wp-image-8668\" src=\"https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/EconomyGrowth-1.jpg\" alt=\"\" width=\"246\" height=\"275\" srcset=\"https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/EconomyGrowth-1.jpg 246w, https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/EconomyGrowth-1-18x20.jpg 18w\" sizes=\"(max-width: 246px) 100vw, 246px\" \/><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Evaluating_the_best_investment\"><\/span>Evaluating the best investment<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">If we compare, onshore outsourcing is the most expensive outsourcing option. Though it is still cheaper than internal hiring, native restrictions, wages, and other factors remain to run up costs. In the U.S., where even the minimum wage (which is often lower than what an IT professional\u2013even an outsourced one\u2013charges) exceeds the rate of offshore or nearshore talent. Therefore, onshore outsourcing can be a costly endeavor.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Offshore software development, though<\/span><a href=\"http:\/\/www.cio.com\/article\/3106821\/outsourcing\/why-outsourced-call-center-roles-are-coming-back-onshore.html\" class=\"broken_link external\" rel=\"nofollow\"> <span style=\"font-weight: 400;\">cheaper than onshore<\/span><\/a><span style=\"font-weight: 400;\">\u00a0by 40-55%, often includes hidden costs that arise from doing business in such a faraway nation. As demonstrated in the Everest Group study, the complexity of the work in terms of it being judgemental vs transactional, the quality of skill required (generic vs niche), and experience level (entry vs experienced) can contribute to higher costs.<\/span><\/p>\n<p>Whenever an issue arises with an offshore software development partner, the costs of handling it can add up to the point of offsetting the funds saved at first. Geography served and choice of location are the Everest Group delivery cost factors to be wary of. And keep in mind: When outsourcing app development, problems are likely to arise. It&#8217;s the nature of conducting business externally; hence the importance of constant communication. <strong>Problem-solving<\/strong><b> becomes more difficult (and costly) when there is a language, time, and\/or culture barrier.<\/b><\/p>\n<ol start=\"2\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Skilled_Labor\"><\/span><b> Skilled Labor<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p><img loading=\"lazy\" class=\"aligncenter wp-image-8083 size-full\" src=\"https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/uruit-julio-2015-254-e1500646549228.jpg\" alt=\"offshore vs outsourcing\" width=\"1881\" height=\"1254\" srcset=\"https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/uruit-julio-2015-254-e1500646549228.jpg 1881w, https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/uruit-julio-2015-254-e1500646549228-300x200.jpg 300w, https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/uruit-julio-2015-254-e1500646549228-1024x683.jpg 1024w, https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/uruit-julio-2015-254-e1500646549228-768x512.jpg 768w, https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/uruit-julio-2015-254-e1500646549228-1536x1024.jpg 1536w, https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/uruit-julio-2015-254-e1500646549228-750x500.jpg 750w, https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/uruit-julio-2015-254-e1500646549228-1140x760.jpg 1140w, https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/uruit-julio-2015-254-e1500646549228-20x13.jpg 20w\" sizes=\"(max-width: 1881px) 100vw, 1881px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">In some cases, there aren\u2019t even enough qualified, internal employees to cull from. In IT, this is especially true: A<\/span><a href=\"http:\/\/blog.indeed.com\/2016\/12\/05\/impact-of-tech-talent-shortage\/\" class=\"broken_link external\" rel=\"nofollow\"> <span style=\"font-weight: 400;\">study of HR managers<\/span><\/a><span style=\"font-weight: 400;\"> revealed that 86% of them have difficulty hiring for technology-related positions in companies. Additionally, technology businesses require a level of skill and experience that is unprecedented in other industries. Concerns over <\/span><a href=\"https:\/\/blogs.wsj.com\/indiarealtime\/2017\/01\/24\/h-1b-visas-how-donald-trump-could-change-americas-skilled-worker-visa-rules\/\" class=\"external\" rel=\"nofollow\"><span style=\"font-weight: 400;\">H-1B visa restrictions<\/span><\/a><span style=\"font-weight: 400;\"> are the latest obstacle to offshore software development, presenting employers with a further dilemma even once they\u2019ve made the decision to outsource. As a result, finding a federally-approved source of labor, and a skilled one at that becomes a major factor pushing application development companies to nearshore outsourcing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>Nearshore outsourcing can provide the skilled, foreign web development team a company requires.<\/strong> And it is at the same level of onshore labor but at a fraction of the cost. Latin American nearshore outsourcing, in particular, has the resources and development necessary to cull a team of experienced developers.<\/span><\/p>\n<p><img loading=\"lazy\" class=\"aligncenter size-full wp-image-8669\" src=\"https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/ColombiaRanked-1.jpg\" alt=\"\" width=\"246\" height=\"275\" srcset=\"https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/ColombiaRanked-1.jpg 246w, https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/ColombiaRanked-1-18x20.jpg 18w\" sizes=\"(max-width: 246px) 100vw, 246px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">This information was recently published by <a href=\"http:\/\/www.focus-economics.com\/regions\/latin-america\" class=\"external\" rel=\"nofollow\">Focus Economics<\/a>. A major reason for this development was the greater emphasis on technology and the benefits of free trade provided by NAFTA and CAFTA. $31.5 million in<\/span><a href=\"http:\/\/www.idgconnect.com\/abstract\/23453\/why-venture-capitalists-looking-latin-america-tech-sector\" class=\"broken_link external\" rel=\"nofollow\"> <span style=\"font-weight: 400;\">venture capita<\/span><\/a><span style=\"font-weight: 400;\">l was distributed among 1,333 startups in the region in 2016, and major investment companies like HCL, Infosys, and Wipro were in the area as of 2015. Furthermore, the<\/span><a href=\"http:\/\/www.idgconnect.com\/abstract\/23453\/why-venture-capitalists-looking-latin-america-tech-sector\" class=\"broken_link external\" rel=\"nofollow\"> <span style=\"font-weight: 400;\">Internet penetration rate<\/span><\/a><span style=\"font-weight: 400;\"> reached 61% in 2015 (far ahead of the global average of 45%).<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Top-notch_talent\"><\/span>Top-notch talent<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">All of these internal conditions allow for the domestic labor force of Latin America to increase their skill level by making the technical resources more readily available. With economic development comes greater access to the tools, education, and experience software developers need to become more adept. As a result, <strong>Latin American is an appealing option for hiring skilled software developers<\/strong> that are becoming increasingly capable due to domestic conditions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Onshore outsourcing presents an option for hiring labor within borders, which often ensures a high level of quality. However, this method is only recommended for companies with enough funds to allot to outsourcing, as it is also the most expensive. Additionally, onshore outsourcing doesn\u2019t necessarily mean avoiding the same pitfalls as other outsourcing options. Because the labor force is still working remotely, so communication is challenging anyway. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">For the 28% of businesses that rely on outsourcing for<\/span><a href=\"https:\/\/www2.deloitte.com\/us\/en\/pages\/operations\/articles\/global-outsourcing-survey.html\" class=\"external\" rel=\"nofollow\"> <span style=\"font-weight: 400;\">core business functions<\/span><\/a><span style=\"font-weight: 400;\">, offshore software development is probably not the right choice. Ensuring a high standard of education and experience is difficult when working with a company so far away. Besides, other barriers, from language to cultural, result in a deficiency of reliable, skilled workers.<\/span><\/p>\n<ol start=\"3\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Geography_and_Its_Implications\"><\/span><b> Geography and Its Implications<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p><img loading=\"lazy\" class=\"aligncenter wp-image-8081 size-full\" src=\"https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/2016_0415_16025800-min-min-e1500646309398.jpg\" alt=\"offshore vs outsourcing\" width=\"1881\" height=\"1254\" srcset=\"https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/2016_0415_16025800-min-min-e1500646309398.jpg 1881w, https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/2016_0415_16025800-min-min-e1500646309398-300x200.jpg 300w, https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/2016_0415_16025800-min-min-e1500646309398-1024x683.jpg 1024w, https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/2016_0415_16025800-min-min-e1500646309398-768x512.jpg 768w, https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/2016_0415_16025800-min-min-e1500646309398-1536x1024.jpg 1536w, https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/2016_0415_16025800-min-min-e1500646309398-750x500.jpg 750w, https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/2016_0415_16025800-min-min-e1500646309398-1140x760.jpg 1140w, https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/2016_0415_16025800-min-min-e1500646309398-20x13.jpg 20w\" sizes=\"(max-width: 1881px) 100vw, 1881px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The role geography plays in outsourcing is often overlooked for the cost benefits. However, how near or far a region is manifests in differentials like time zone, culture, and language. These factors play a major part in determining the overall effectiveness (and pleasantness) of software development outsourcing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nearshore outsourcing addresses all three implications of geography in the outsourcing procedure. To begin with, most of Latin America is on the same or very similar time zone as the United States. <strong>Being in the same time zone allows communications to occur on the same schedule.<\/strong> As a consequence, it encourages greater cooperation throughout the development process.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cultural and language similarities are key for ensuring standards. Therefore, both ends understand the goals and communicate well. Language and cultural barriers can cause frustration and higher fees (e.g. miscommunication about costs), so it pays (literally) to outsource development to Latin America.<\/span><\/p>\n<p><img loading=\"lazy\" class=\"aligncenter size-full wp-image-8670\" src=\"https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/English-1.jpg\" alt=\"\" width=\"283\" height=\"275\" srcset=\"https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/English-1.jpg 283w, https:\/\/uruit.com\/blog\/wp-content\/uploads\/2017\/07\/English-1-20x20.jpg 20w\" sizes=\"(max-width: 283px) 100vw, 283px\" \/><\/p>\n<p>More info in the <a href=\"http:\/\/monitor.icef.com\/2015\/11\/fifth-annual-english-proficiency-ranking-finds-latin-america-on-the-rise\/\" class=\"external\" rel=\"nofollow\">EF English Proficiency Index<\/a>.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Culture_other_limitations\"><\/span>Culture &amp; other limitations<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">For iterative and innovative software development, traveling is a crucial part of the quality assurance process and product development. The costs of traveling to and from the U.S. to Latin America vs India or China are very different. From New York City to Mumbai, the average price is over $800 and average flight time is approximately 15 hours (nonstop). <a href=\"https:\/\/uruit.com\/blog\/uruit-travel-to-the-customer-a-key-ingredient-for-a-successful-development-project\/\">Traveling to Colombia, meanwhile, is on average a three-hour flight and costs only $250<\/a>. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Offshore software development presents the greatest risks when it comes to geographic consequences. Countries are often far away, with extremely different languages and cultures. As a result, companies that go the route of offshoring often experience miscommunication that leads to slower turnaround. Other problems that come out are low productivity and an overall unpleasant experience. <strong>Building innovative apps requires an understanding of the native users\u2019 culture.<\/strong> Nearshore outsourcing to Latin America accomplishes this task because the U.S. and Latin America share similar media, consumption habits, and even history. Thus, it is easier to understand the more nuanced aspects of an American app user\u2019s behavior when developing the product. <\/span><\/p>\n<div class=\"tweet-box ctt-box-design-1 \">\n\t\t\t\t<a href=\"http:\/\/ctt.ec\/83cn6\" target=\"_blank\"  class=\"external\" rel=\"nofollow\">\n\t\t\t\t<p class=\"ctt-font-original\">Nearshore outsourcing presents the most viable options considering cost, labor, and geography.<\/p>\n\t\t\t\t<div class=\"click-to-tweet\"><i><\/i><span class=\"cta-pr\">Click To Tweet<\/span><\/div>\n\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n<p><span style=\"font-weight: 400;\">These are the most important aspects to any business pursuing this method. By <strong>keeping prices low, having a similar language and culture to the U.S. to prevent miscommunications<\/strong>. Also, having a developing economy spurring the growth of a skilled labor sector, Latin America provides everything an outsourcing IT company should be looking for.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Were_nearshore_outsourcing_advocates\"><\/span>We&#8217;re nearshore outsourcing advocates<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">When looking for nearshore outsourcing partners, Uruit is the premiere <a href=\"https:\/\/uruit.com\/product-development\">web and mobile app development agency<\/a> to turn to. Uruit has been in the software outsourcing industry since 2007. During the last 10 years, we have provided nearshore staffing and full product development services to a wide array of U.S. companies looking for skilled talent, accessible costs, and nearby proximity. Our success is based in the belief that in nearshore outsourcing there is no \u201cclient\u201d and \u201cprovider\u201d; everyone cooperates and communicates as members of the same team and project. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you would like to know more about the benefits of nearshore outsourcing from Uruguay and Colombia, where Uruit\u2019s Development Centers are located, please visit the links and get to know the extra advantages both locations offer!\u00a0<\/span><\/p>\n<p><script src=\"https:\/\/uruit73629.activehosted.com\/f\/embed.php?id=33\" type=\"text\/javascript\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Contents 3 Ways Nearshore Beats Offshore Software DevelopmentThese are the available options for outsourcing:Nearshore vs offshore outsourcing &#8211; what\u2019s the best model for me?3 major reasons why US companies choose&#8230;<\/p>\n","protected":false},"author":36,"featured_media":8121,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[278],"tags":[],"_links":{"self":[{"href":"https:\/\/uruit.com\/blog\/wp-json\/wp\/v2\/posts\/8076"}],"collection":[{"href":"https:\/\/uruit.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/uruit.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/uruit.com\/blog\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/uruit.com\/blog\/wp-json\/wp\/v2\/comments?post=8076"}],"version-history":[{"count":6,"href":"https:\/\/uruit.com\/blog\/wp-json\/wp\/v2\/posts\/8076\/revisions"}],"predecessor-version":[{"id":11270,"href":"https:\/\/uruit.com\/blog\/wp-json\/wp\/v2\/posts\/8076\/revisions\/11270"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/uruit.com\/blog\/wp-json\/wp\/v2\/media\/8121"}],"wp:attachment":[{"href":"https:\/\/uruit.com\/blog\/wp-json\/wp\/v2\/media?parent=8076"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/uruit.com\/blog\/wp-json\/wp\/v2\/categories?post=8076"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/uruit.com\/blog\/wp-json\/wp\/v2\/tags?post=8076"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}