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Nearshoring your software development and other services from the IT industry, cuts costs, reduces stress and improves communication. It also boosts innovation. Nearshoring is the practice of outsourcing or offshoring projects to teams in a nearby country.

a map showing how close is Colombia from the US

What is nearshoring?

Nearshoring is the younger, trendier cousin of offshoring, where companies send their products for manufacture overseas. Outsourcing, is where companies hire overseas staff and teams to realize their projects – and it’s mostly done to reduce running costs.

Formerly, companies are increasingly choosing to offshore and outsource to teams in a near or neighboring country, rather than one that is far away. This helps them save on costs, time and stress, improve communication and oversight, and gain a competitive advantage.

This trend is known as nearshoring, and sometimes as regionalization. Here, we examine the top five benefits of moving your company’s offshoring and outsourcing needs to a country closer to home.

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The top 5 benefits of nearshoring

1. Reduce costs

More and more companies are taking a regionalized approach to outsourcing and offshoring and are investing in nearshore software outsourcing, mostly because it cuts down on costs.

Companies in the US, for example, can access the hottest new and emerging IT talent in Latin America at a far more cost-effective rate than they can at home. Some sources suggest US businesses can save up to 50% in labor costs by opting for nearshore development – delegating their tech tasks to skilled professionals in Central and South America.

Nearshoring also reduces the amount companies spend on travel, because it’s cheaper and easier to organize face-to-face meetings when offshoring to a nearby country. Less time is wasted by staff sitting on airplanes, and they won’t be fighting jet lag when they arrive either.

2. Improves communications

Outsourcing or offshoring IT services to a country closer to a company’s native one means staff are more likely to work with someone who either understands the home country’s business culture, or has grown up in a similar one.

This reduces the cultural discrepancies and confusions that can delay and sometimes derail offshore and outsourced initiatives. In-house and external teams must communicate effectively to ensure they have the synchronicity, cohesion, and focus required for projects such as app development and other digital product design.

Ceiba’s IT staff are fully bilingual, which means nearshoring to Ceiba removes the language barrier entirely. Our nearshore agile software development teams offer clear, seamless and comfortable communication – reducing misunderstandings and avoiding costly mistakes.

3. Easier oversight

One of the key benefits of nearshoring is exactly that: proximity. Not only are staff members from the client company physically closer to their new developers, and can easily visit them and collaborate in-person, but irritating international time zone differences are immediately eliminated.

When staff are working in the same time zone, or very close to it, there is greater overlap in the working day, making it easier to schedule everything from virtual meetings and email communications to in-person presentations.

4. Competitive advantage

Localization in the IT industry allows companies to delegate the design and development of any product a user buys, downloads or uses via an app, website or other platform to nearshore outsourcing companies like Ceiba.

This includes custom software development, mobile app development, staff augmentation, and managed software development teams.

Ceiba specializes in transactional systems, blockchains, RPA and AI systems, as well as all aspects of web design and development. We have amassed a treasure trove of world-class tech talent from across Colombia.

Our professionals’ technical, bilingual and collaborative skills allow them to design and develop user-facing components that are sympathetic to the client company’s local culture, language, attitudes, and preferences.

They can also generate ideas and implement new processes that spark disruptive nearshoring, ensuring the benefits of nearshoring go beyond cost-saving, communication and oversight advantages, and lead to creative solutions and innovations that put companies ahead of their competition.

5. Reduces stress

Ceiba’s staff are highly and measurably skilled in all aspects of information technology, and can be trusted to deliver a range of software development services on time.

Colombia also has strong intellectual property protection laws, which are critical when a business is designing and developing proprietary apps and other digital products and software, and needs the security of an intellectual property environment similar to that of their home country.

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Nearshoring benefits your business

There’s a reason increasing numbers of businesses are turning to nearshoring in the IT industry for their tech, app development and digital product design needs. 

In addition, from reduced costs, improved oversight and more effective communications to the alleviation of stress and the gaining of an innovative, competitive edge, the nearshore software development model has several advantages over more traditional offshoring and outsourcing offerings.

To take advantage of Ceiba’s nearshoring opportunities, enquire here


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