A long and profitable business relationship is rewarding, and that is why the number of companies that outsource their IT projects to nearshore providers is constantly increasing. No wonder, the benefits nearshore IT companies offer leave them with no better option.

The first reason why it's so beneficial to outsource your project to a nearshore provider is because they can provide you with a lower cost of labor. Nearshore providers typically hire employees at a lower cost than companies in North America or Europe do, but they still offer high-quality work that meets all your requirements.

Another reason is because a nearshore provider can help you save time. Since they are located closer to you, there will be less travel involved in getting your project done which means less time wasted on commuting and more time spent working on your goals!

Selecting a nearshoring partner can be the beginning of a productive business relationship. To ensure the relationship is successful, consider these recommendations:

1. Create your software requirements

Creating a software requirement specification is an essential activity that precedes software development. You have to specify clearly your needs and expectations from the future application: what you want it to do, what functionality it has to include and how the application should behave.

This document will help you define the overall requirements for your project, including basic information about the project itself as well as specific details about what kind of product or service you need.

The purpose of creating such a document is to ensure that all parties involved in the development process are aware of their responsibilities and tasks, as well as to prevent misunderstandings between them. It also helps identify potential problems with the product early on in the process, which can save time and money later on down the road.

2. Choose the right country for your project.

Nearshoring is a growing trend in the software development industry. This means that companies are not just outsourcing their work to countries around the world, but also to locations within their own country or region.

When choosing a nearshore software development center, there are several factors to consider. For example, it is important to consider the cost of living in each country and how that affects the hourly rate. Additionally, you should look at other services available in the location you choose, such as internet speed and availability of resources like translators.

3. Opt for a friendly team

You’re going to be spending a lot of time with your software development company, talking about tasks or testing your product. You’ll want to be able to have a communicative, friendly partner.

4.Communication skills and language proficiency (both oral and written)

It may sound insignificant, but is necessary to build a strong business and cultural relationship with your partner. Efficient communication can boost a project’s success. And I don’t mean communication between you and management only, but also how well do the team members interact. A good team collaborates willingly and listens intently.

5. Don’t deny the importance of choosing the right-size team

Most of us have the wrong opinion that the larger the outsourcing vendor is, the more quality and attention you will get. This is not always true. To give an illustration of what I mean, let’s imagine a conversation with a manager that is also responsible for dozens of other projects. Working with a “giant” you won’t get full attention and not always your each and every idea will be understood correctly.

According to Quantitative Software Management, small teams are more efficient compared with larger teams. That doesn’t mean smaller software development companies don’t have their disadvantages. Even if a small partner usually has lower costs and the communication is far easier, the project can be quite vulnerable if one individual leaves the team.

6. Project Experience

The key is to choose a software provider with strong core values such as experience. Experienced vendors will understand your specific needs. In order to save your time, choose a more experienced software development company.

As we all know, the more experience a nearshore IT company has, the better it is. The company you want to work with should have at least 5 years of experience in the software development field.

Don’t hesitate to ask for references and work samples, ask questions about the types of project they have worked on in the past. The software development team will provide the name of the project, the type of project, and a list of the technologies used.

7. Delivery Times

Providing realistic deadlines and goals is another important aspect. Deadlines are useful but they can be a source of frustration if they are not set accurately.

8. Cost-effectiveness

We can not neglect the importance of this point. You have to make sure your potential vendor charges reasonable rates for their IT services.

Lower prices don’t mean bad quality, it’s just the geographic and economic reality.

For instance, if you are an European company owner, nearshoring in Moldova is probably the best solution for your business as this country provides quality at a low price, actually the lowest in Eastern Europe.

9. Frequent deployments

The company has to show you the progress of their work periodically. Deployment made at least every two weeks will improve the quality of the process and will increase the speed of software development.

10. Company Culture

The culture of the outsourcing company matters because it has a direct impact on employee longevity and the quality, customer service.

Finding a partner that keeps pace with a strong culture and finds a way to be different from other IT companies can make the difference between success and failure. “Diversity is in itself a core strength that will enable us to write better software and build better products.” (Edward Kim, Cofounder of Gusto)

Remember to treat the selection with the responsibility and respect it deserves, in order to have a long and profitable business relationship with your outsourcing vendor.

All in all, we hope that this guide has been helpful. It's a great start if you're considering a nearshoring initiative, and it should make the process easier if you choose to go that route. Whether you need help with development or management, we're here for you. For more information about how we can help, check out our homepage, or drop us a line at info@atomate.net