In the past few months, we all have witnessed how the pandemic accelerated some of the already-underway trends. One of the most noticeable consequences that have affected working environments worldwide has been overcoming most of the harmful prejudices that remained against working remotely.

Poor communication, difficulties to switch off after work, and decreased productivity are only some of the ideas traditionally associated with remote work. Until not long ago, these ideas prevented companies from adopting a more open approach towards it.

But as the pandemic rapidly unfolded, companies across the world were forced to confront these challenges and develop tools, strategies, and processes that allowed them to adapt to the new situation to remain productive and at the same time safe from the spread of the virus. 

Not surprisingly, the work-from-home trend has had a vast effect on the IT industry, and mainly, it has boosted the growth of the outsourcing model. For decades now, nearshore outsourcing has allowed companies access to software development services at considerably lower costs.

Companies from developed countries used to partner with offshore teams on the other side of the world. But most recently, important tech hubs have emerged in closer countries within Latin America, and lots of companies have benefited from partnerships with IT teams that are fitter to meet their IT needs for a variety of reasons.

This is known as the nearshoring model, and the acceleration of the work-from-home trend has only intensified the sharp growth that this industry was already experiencing.

      

 

The rise of nearshoring software development

Nearshoring is not new for companies in developed countries. As the demand for IT products kept rising, partnering with teams of top-notch developers from closer countries has better-helped companies. In this way, they avoid some of the most common offshoring issues, especially when it comes to communication difficulties caused by cultural gaps and significant time zone differences. 

Eagerworks has grown amid this new wave of the IT outsourcing industry. Uruguay’s flourishing tech environment has provided excellent conditions to create a team of IT engineers that can offer customized solutions for companies worldwide.

With an available workforce of talented engineers - created by a virtuous combination of government policies and private entrepreneurship -, a culture more akin to the US, and a similar time-zone, our country has become an attractive tech hub. Companies from the United States usually look for partners for their software projects here.

The main reason why the nearshoring model is becoming so popular is that it allows companies to achieve both goals simultaneously: saving costs while working with some of the most talented IT engineers in the whole world.

Aside from the most traditional advantage of cost-saving, let’s look at some of the other benefits that a nearshore development services can offer to companies in developed countries. 

 

Gain access to expertise and innovation 

Nowadays, companies have the advantage of accessing globally remote talent, in a time where geographic boundaries no longer exist. Before deciding who to partner with, you will undoubtedly want to learn about your potential partner’s experience with other companies, previous projects, and case studies.

Some companies even opt to begin with a test project that allows them to evaluate their partner’s communication skills, ability to reach excellent results in time, and general performance along the process. 

Software development involves a complex set of skills. Moreover, these skills are constantly evolving and require permanent adaptation. Outsourcing teams are experienced in working on a wide range of different projects, and this diversity of experience makes them more prepared for facing new challenges.

Capacity for innovation, cutting-edge knowledge on tools and workflows, and out-of-the-box thinking are frequent features of these teams. 

But the expertise a nearshore development team can offer will benefit your company far beyond the short-term goal of developing a great new software product. One of the main reasons nearshoring has become so appealing is that it allows companies to build long-term relationships with trustworthy partners.

And a long-term, productive partnership makes it possible for you to harness your partner’s expertise to introduce new best practices in your company. You can create more efficient workflows, achieve higher quality standards, improve communication among your internal team members, and have employees better trained at using the most innovative IT tools. 

 

Gain focus on your core business

Training full-time IT engineers to assemble an in-house team can be a frustrating -and ultimately pointless- process. It’s especially true for early-stage startups that cannot deal with hiring workers’ high costs for development projects with skills that may not be required once the project is completed.

On the contrary, working with an outsourcing partner allows you to balance your in-house team with an external team that can fit those specific roles required at a particular stage of your company’s growth. You will not need to invest unnecessary time and money in assembling a team yourself. And in this way, you will be able to free those valuable resources to work on what your company does best and let the experts provide you with the necessary skills to create excellent software products. 

As we all know, keeping a company’s competitive edge is not an easy task. Holding the ability to decide what you want to focus on is crucial at every step of your company’s evolution. It’s an invaluable competitive advantage that a reliable software partner can offer you: being able to decide at every moment what it is that the members of your in-house team should be concentrating on.

The positive impact of this on your company will stretch across more than a few areas. It will allow you to improve strategic planning, increase your productivity, and enhance employee engagement and satisfaction. 

 

Remain flexible 

There’s still another critical advantage of trusting your software development projects to an external team that applies not only for startups but also for well-established companies. As we know, being flexible and adapting to the market’s constant changes is crucial for any thriving company.

Outsourced development teams are composed of various profiles assigned according to temporary demands and then reallocated when their skills are no longer needed for a specific project. By choosing to partner with an outsourcing team, you will avoid those fixed costs produced by inflexible infrastructures that prevent you from adapting to new needs and challenges. 

Our experience at Eagerworks allows us to address each project with a clear definition of what roles we need, who is responsible for each task, and which deadlines everybody should meet. We can point out which areas of a project plan need strengthening and identify issues to raise red flags early if required. All this adds to the flexibility that any project needs to reach successful results. 

But flexibility doesn’t only improve the ability to develop better products at lower costs - it also means you will be able to do it faster.  

 

Speeding time to market

In the highly competitive landscape of the digital era in which we live, it is usually not enough to develop innovative products or offer top-quality services. Since a product’s novelty may diminish surprisingly fast, a delayed launch can have serious consequences. A promising idea or project can be quickly jeopardized by a company’s inability to develop it within a relatively short time frame. 

At Eagerworks, we work side-to-side with our partners just as a CTO, and we take responsibility for managing their technological needs and requirements. Our expertise allows us to meet deadlines and comply with established timeframes without never losing focus on the quality of the products we deliver.

If we consider the time and cost of hiring and training an internal team for a software project or the impact of communication difficulties with an offshore partner, we will realize that the benefits of partnering with an expert nearshore software team go far beyond meeting your technological needs - it can be a key to maximize your company’s chance of succeeding.

Nearshoring Combines the Best of the Onshore and Offshore Model

Today, nearshoring is perceived as offering companies the advantages of both the onshore and offshore models. While the cost of partnering with a nearshore team is considerably lower as compared to an onshore team, it can -at the same time- offer companies access to innovative, talented, and dedicated teams of IT experts with excellent communication skills. Nearshore countries that stand out, such as Uruguay, Costa Rica, or Colombia, have a similar cultural mindset and share a similar time-zone with the US, have excellent English proficiency and high-skilled IT professionals, and have had economic stability for decades. 

You can find these features in Uruguay, one of the countries with the highest software exports per capita rate. There is also a common worry associated with some of the countries that can offer great development teams, especially if you are interested in developing a relationship that can span different projects. Is the country stable enough so that our partnership will not suffer because of erratic public policy? Does my partner count with a stable economic environment that allows them to plan and meet their goals? It turns out that for decades now, the steady growth of Uruguay has been grounded in solid political and economic stability. It’s what has allowed the country as a whole to develop a successful long-term strategy to train highly-skilled engineers and foster the rise of top IT companies.    

For companies in the US, partnering with an Uruguay software development team is relatively easy, with no legal issues implied. By choosing Eagerworks, you will be partnering with a team that will work side-to-side with you just as if we were a CTO. This means we will not only provide you with our technical expertise but will also take responsibility for managing your technological and business needs to maximize your company’s chances for success. So if you are looking for a team of expert Ruby on Rails software developers, don’t hesitate to contact us.