Like all the other outsourcing models, the nearshore outsourcing model has its fair share of myths surrounding it. Out of all the myths surrounding the industry, we handpicked the ten that are the most prevalent.
You already know how nearshore outsourcing works, so let’s get straight to the myth-busting part without further delay.
Myth #1. Nearshore Outsourcing Doesn’t Provide The Quality Clients Desire
Nearshore is often seen as a way to achieve cheap labor, and the end product that a nearshore team provides is usually low-quality.
But in reality, you have a better chance of getting a high-end product with nearshoring than an in-house team.
Companies leverage the nearshoring model when the internal team isn’t qualified enough to take on the development and the product owner needs to fill in the technical gaps.
As a result, nearshoring brings in sophisticated expertise that can help you achieve better results before the full-fledged product is published.
Myth #2. Nearshore Is More Expensive
This one’s a partially true statement. Since nearby countries and regions have similar monetary value, there are few options to save money compared to offshoring.
In offshoring, you outsource your operations to countries with lower living costs, which helps you save costs while making fair payments.
But even then, nearshoring isn’t more expensive than onboarding a full-time employee. A new employee takes around three months to onboard and integrate into the team, and the payroll is much higher than that of a nearshore development team member.
Myth #3. Nearshore Developer Teams Are Harder To Manage
The idea comes from the belief that teams are tougher to control if they are not present on-site. In the case of nearshore teams, every individual professional joining the team is an industry expert who grasps the thorough concept of development culture and is self-managed.
Since nearshore team members can gather at a physical location for having retrospective meetings or any other decision-making process, it’s easier to keep track of the progress of every team member and assign tasks accordingly.
Myth #4. Nearshore Teams Lack Proper Communication Skills
Nearshore teams can often develop better communication skills than most offshore teams, and that’s a fact.
Nearshore teams come from places with similar cultures or often even the same primary language. As a result, nearshore teams are better at conveying their messages without the risk of anything getting lost in translation.
Myth #5. Nearshore Teams Are Not As Reliable
Nearshore teams are considered reliable because of the mistrust coming from misinformation. In reality, nearshore teams are highly reliable and will always do their best to provide value to your project by delivering a good product.
Nearshore vendors and team members are all human at the end of the day, and the sense of neighborhood and cultural similarity can spark a feeling of familiarity. It helps the developers connect with the client on a more personal level humanely.
Team bonding is great for development efficiency and progress, and the team members are always reliable and efficiently productive.
Myth #6. Nearshore Outsourcing Is Only For Big Businesses
Nearshore outsourcing is the expensive route only fancy big-name corporations can take. Nearshoring can be a savior for small or medium businesses that don’t have a high enough budget to sustain full-time employees for the long term.
Nearshore outsourcing can help Small and Medium Businesses (SMBs) to hire individuals or a team with the same high-end skillset many larger corporations have but at a more affordable rate.
Myth #7. Cultural Barriers Is An Issue
Nearshore outsourcing is one of the many models where a cultural barrier is the least of all issues. Since all nearshoring locations adjacent to your country will always be culturally similar, there are next to zero cultural barriers when hiring a nearshore team.
Besides, increasingly nearshoring vendors are training their employees to get acquainted with foreign cultures to create a diverse team that can adapt to any culture when working with international clients.
Myth #8. Working With Nearshore Developers Results in Data Loss
Nearshore developers are always highly concerned about data security and encryption to protect the confidentiality of their customer’s business information. Security practices of an outsourcing vendor can affect the brand reputation of vendors, and nearshoring vendors are always very strict about data security.
While some vendors are not entirely honest about their practices, most of them try their best to uphold complete compliance with all possible data security laws that can prevent any kind of data loss or corruption.
Moreover, these vendors also create backups of their work so the project can be restored and resumed in the case of a data loss.
Myth #9. The Client Doesn’t Have Control Over Nearshore Development Team
Just because the team is not present on-site, it doesn’t indicate that the team leader has less control over the rest of the team. Nearshore clients always have complete governance over their chosen teams.
All team members communicate with the product owner or client through remote collaboration tools. Since nearshoring makes traveling easier, the client can also travel to meet their team for discussion and task delegation.
Myth #10. Nearshore Is Only For Short-Term Projects
The reality is the entire opposite. While you can hire nearshore partners for short-term projects, that’s not the extent of their abilities. If you find the vendor reliable, you can hire the same team for future projects.
While the contract may not last past the project, the client and vendor bonding ensures that the partnership lasts long-term.
Nearshoring teams can also help businesses branch out into neighboring regions, as the client can assign different operations to entire nearshoring teams.
To Wrap It Up
Of course, all outsourcing models come with their own set of ups and downs. With nearshoring, you can minimize outsourcing issues for a slightly higher price range than offshoring in some cases.
Planning to partner with a trustworthy software development vendor? Impala Intech is at your service with our team, expertise, and the skills you will need for your next project. So why not get working with us today?
FAQ
Quality depends on the chosen provider and the defined standards; nearshore outsourcing can deliver high-quality results.
Nearshore providers can be flexible and agile, adapting to evolving project needs and client demands.
Many nearshore locations have a pool of highly skilled professionals, making talent acquisition less challenging.
Transparency can vary among providers, but it’s essential to establish clear communication and reporting expectations.
While it depends on the location, many nearshore countries have stable political and economic environments.
