4 Reasons Nearshoring IT Centers Beat Traditional Offshore Alternatives

4 Reasons Nearshoring IT Centers Beat Traditional Offshore Alternatives

4 Reasons Nearshoring IT Centers Beat Traditional Offshore Alternatives

4 Reasons Nearshoring IT Centers Beat Traditional Offshore Alternatives
Last Updated: November 17, 20233.2 min readCategories: Nearshoring

4 Reasons Nearshoring IT Centers Beat Traditional Offshore Alternatives

Offshoring is a smart software development outsourcing option while facing increasing global competition for many companies. In many circumstances, it not only saves money and enhances profitability, but it also delivers much-needed innovation.

In the 1990s, there was a rise in US companies who moved into offshore models for skilled technical staffing and cost-efficiency. In the past, companies looked to offshore to countries such as India and China as they promised to deliver projects at extraordinary savings. Many of these same firms will tell you today that these partnerships were not without costly, sometimes career-ending, pitfalls.

1. Proximity to the US Delivers Cultural and Time Zone Compatibility

Today, many of these same companies, faced with the same and even tougher challenges, recognize more and more of the benefits of nearshoring locations versus traditional offshoring locations. Nearshoring involves the transfer of business or IT processes and development work to companies in neighboring or nearby countries. Nearshoring locations, such as Brazil and Costa Rica, offer an alluring alternative to traditional offshoring locations for many reasons.

Nearshore locations like Brazil and Costa Rica are ideal for those seeking to outsource due to their proximity to the United States. Cultural similarities paired with a majority of Latin Americans possessing fluency in English make nearshoring great for U.S companies (84% of employees in the IT sector speak English in Costa Rica). The congruency of onsite and nearshore staff gives quality and effective results. In addition to this, similar time zones allow for more natural communication, as well as decreased travel time when necessary. Costa Rica is in the central time zone, and Brazil offers convenience for east coast clients.

2. Large Talent Pool of IT Professionals

Brazil has around 500,000 IT professionals, making it an excellent location for locating offshore talent. Located within a fifteen-minute drive of QAT Brazil’s Uberaba office, is one of Brazil’s top computer engineering undergraduate programs, The Instituto Federal do Triângulo Mineiro – IFTM. This Federal Institute has become a vital feeder program for QAT Brazil.

Costa Rica is ranked as an innovation leader in Latin America, according to the Cornell, INSEAD, and WIPO 2017 Global Innovation Index. In Costa Rica, over 34% of workers in the IT sector have at least a bachelor’s degree, and 20% have technical or professional certifications.

3. Competitive Costs with High-Quality Results

It is understood that clients want higher quality and at least the same convenience of a local development team at an offshore cost. With the large pool of talented professionals Brazil and Costa Rica have to offer, qualified candidates are employed for a significantly lower rate compared to the United States. Nearshoring provides your project budgetary savings while also producing quality work you can take to production with confidence.

4. Minimized Risk

Risks are minimized when you choose to nearshore thanks to real-time collaboration, development center stability, an active developer community, and robust development processes. We have found that successful teams are made up of team members from the onshore and offshore development centers, as well as the client themselves. Clients are able to actively participate in the development process, ask questions in a timely manner, and make requirements changes as needed ensuring that the delivered project is the quality expected.

Partnering with an Experienced Nearshore Software Development Provider

QAT Global offers our customers the option of leveraging talented development team members from our wholly-owned and staffed Nearshore Development Center in Uberaba, MG, Brazil, and in San Antonio de Belén, Heredia, Costa Rica.  The QAT Global Brazil and Costa Rica Development Centers provide ROI that has been well received by customers who have opted to take advantage of its technical resources. Both development centers both bring a committed focus to the critical success factors and risk reduction methods in our software development approach.

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