5 nearshore development statistics you need to know in 2023

Companies are increasingly recognizing the significant advantages that nearshore development offers compared to traditional outsourcing options. Opting for nearshore development, which involves collaborating with development teams in geographically close countries, has proven to boost business in various ways: it speeds up project development, reduces costs, and increases quality.

This modality is very attractive for businesses, since it contributes to better communication and coordination between the internal team and the nearshore development team; there is also cultural and temporal proximity, which reduces language barriers and facilitates real-time collaboration.

Additionally, the ability to share similar time zones has allowed for greater overlap in work hours, which in turn speeds up problem resolution and project delivery.

Keys to understanding the nearshore development modality

In addition to what we already explained above, there are several essential points that show how strategic it can be to work under the nearshore development modality:

Leverage global talent: By choosing nearshore development, companies can access high-quality technical talent in nearby regions, without having to deal with the cultural and time zone differences that can arise offshore. It is an opportunity to include your most experienced personal team and with a broader vision of your industry and the market, which can influence the quality and the final concept of your project, creating a much more complete product.

Face-to-face visits are possible: Although nearshore development focuses more on remote work, if the supplier and the contracting company are in nearby countries, quick trips and face-to-face visits can be provided if necessary, to deal with more pressing issues. or important. This type of meeting contributes to strengthening working relationships, trust and mutual understanding of the project's objectives.

Agility and flexibility: Nearshore development is key for companies when they need to quickly adapt to market changes or customer demands. Nearshore teams can collaborate more agilely and quickly compared to outsourcing options further afield. For example, imagine working with a company from India, while being in the US If the company has any issues, it would take valuable hours for the provider to respond and address the situation.

Regulatory Compliance: Working with nearshore development teams often means dealing with regulations and regulations similar to those of the contracting company, which can simplify regulatory and legal compliance as there is a better understanding of the similarities between each country.

Statistics about nearshore development that you should know in this 2023

Statistics are always very useful as they allow us to have a broader picture of any topic, in this case, nearshore development. Review them in detail and evaluate how useful this work modality can be for your company or to create your next project.

1. Global companies outsource 64% of their software development

This is a very important figure shared by the firm Statista, which shows the great demand for software development that exists today and how companies are trying to solve this need by contracting nearshore development services, which complement their internal teams.

2. North American companies seek nearshore talent in Central America

Outsourcing is expanding rapidly in Central America, cites a study by Accelerance, indicating that Panama is rising as one of the countries with the best providers of nearshore development, along with Honduras and El Salvador.

3. 70% of companies hire nearshore development services to save costs

Cost savings continues to be the main motivation for businesses when contracting nearshore development services, as it allows them to have better control of expenses and budget, reports an Accelerance study. Nearshore development is also a way to find valuable talent at a reasonable price to support business transformation efforts. 40% of the leaders said that they also get flexibility and speed in this modality.

4. 53% of companies have trouble recruiting developers with the right skills

In itself, the recruitment task is complicated, and now the Reveal Survey Report 2022 survey indicated that the main problem for companies is recruiting the ideal personnel for their projects. They continue to struggle with finding qualified people to develop applications, handle migrations, and implement new technologies. This is where the nearshore development modality is key, since these providers have access to a wide group of professionals, where the profile that your project needs may be.

5. 64% of managers said that the lack of talent is the main barrier to the adoption of new technologies

According to Gartner, the difficulty in finding talent is the main obstacle when it comes to adopting new technologies in their businesses, since they do not have qualified internal personnel and recruitment usually takes a long time, time that sometimes cannot be taken. Among the profiles that present the most deficit in the market are the specialist in cybersecurity, Big Data, specialists in architecture, DevOps, cloud computing, artificial intelligence, among others. It should be noted that nearshore development providers have these resources on their teams, who are ready to join any project.

Nearshore development emerges as a strategic and effective option for the growth of businesses that face resource constraints, but want to maintain a high level of control, communication, and quality in their development projects.

Geographic proximity, cultural alignment, and greater time overlap allow for smoother and more efficient collaboration, accelerating decision-making and problem-solving. Ultimately, nearshore development stands as a catalyst for growth, empowering companies to achieve their technology goals without compromising quality or sacrificing direct control over their projects.

Do you need a nearshore development team on your project? At Rootstack, we have +12 years of experience supporting companies in their digital transformation. Contact us!

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