Decades ago, outsourcing IT was a business model used by the world’s biggest companies to keep costs down. Today, with the rise of digital transformation, many mid-sized companies are considering outsourcing as a viable business option.
While outsourcing is still a way to save money, the benefits of moving IT services offshore go much further. As consumers demand more digitalization in the products and services they consume, outsourcing has become a legitimate way to access a wider talent pool at a cost-effective rate to get a time-sensitive project complete.
Thanks to the pandemic, remote work is now the new normal. Because of the rapid change in work structure, many businesses had to create their remote working models on the fly – many of which had to use outdated technology and operating systems. As we look to a future of hybrid or even complete remote work models, these outdated systems will have a short shelf life.
Outsourcing can provide access to resources without having to manage an in-house engineering team. It also provides flexibility when considering scaling. Being able to grow and shrink your team to align with the demands of a particular project is a tremendous competitive advantage.
With all the benefits offshoring provides, there are some downsides too. Typically, offshoring equates to hiring a team of people on the opposite side of the globe than you, making it difficult to communicate in the same language and in real-time. And with a cost-effective rate, the quality of work is typically lower than needed. So, how do you build an affordable, easy-to-communicate-with offshore team without compromising on quality? Nearshoring is one way to ensure the quality you’re looking for.
Hiring an outside vendor can be challenging. Many of the benefits of outsourcing can be compromised by bad communication and poor relationships. The emergence of automation and artificial intelligence isn’t about replacing humans with machines. If anything, the relationship with your vendor is the most crucial aspect of its success.
With nearshoring, outsourcing IT services to Latin America ensures the ability to foster stronger relationships and better quality outcomes for your business.
On average, the time zone difference between the United States and Latin America is less than two hours. When outsourcing, the location of your chosen vendor is as important as communication is to having a quality relationship.
If you require a team of people to work closely on projects with your staff, nearshoring to Latin America makes logistical sense. Communication is even more accessible than between the East and West Coasts. There is more time for teams to stay in touch, and meetings can be held within regular workday hours.
With Agile software development, clients and their development team need to be in constant communication. Outsourcing across time zones can severely affect a business’s ability to deliver projects quickly, the way they were intended.
Competition for talented software engineers and IT professionals is at an all-time high. 61% of hiring professionals see it as the biggest challenge of this year. For many businesses, the cost of hiring these services from a local talent pool may be prohibitive. Hiring full-time staff is also less flexible than outsourcing and doesn’t allow for scaling.
In recent years, Latin America has emerged as a hub for expert developers and engineers. Latin American universities have followed the lead of the US, pushing Agile as a preferred method of software development. Your business can hire from a strong talent pool of engineers, testers, and developers specializing in areas where your staff needs support.
The success of outsourcing, and especially nearshoring, is in your staff’s relationships with the vendor. Latin America isn’t just geographically close to the United States; its culture is more closely aligned to the US than Asian, Indian and even European markets. With staff augmentation, hired staff will work closely with your own to complete projects, troubleshoot problems, and pitch ideas to bring the work to fruition. Hiring talented workers that gel with your existing staff is essential.
One of the benefits of working with vendors in Latin America is that English proficiency is exceptionally high. Since children learn English at an early age, it makes great sense to hire from the talent pool over cheaper markets like India or China, where English proficiency is lower.
At Novacomp, our dedicated and highly skilled teams design and implement innovative nearshoring solutions that guide companies towards digital transformation. We don’t just focus on finding the best staff; we’re also excellent at retaining them. Our staff is highly skilled and passionate about what they do. This means we can supply our clients with a stable team, with less turnover and high production rates.
We’re more than a nearshore partner. We provide flexibility in building the team you want, wherever you want them. As a Costa Rican company, we operate from the heart of Latin America and work in the same time zones as much of the US.
We provide a flexible way to hire a pool of dedicated developers quickly and effectively through staff augmentation. In just 3-6 weeks, we can get you the right team of highly skilled workers for your project, giving you the ability to scale and grow as your project demands. With Novacomp, speed and quality services are always on your side.
Reach out to our team and learn how we can help you build your IT capabilities. We look forward to helping you.
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