5 guarantees that a nearshore development company must offer

June 03, 2024

Tags: IT Staff Augmentation

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Many companies considering hiring an external software team face a common dilemma: while they recognize the potential benefits of this strategy, such as cost reduction and access to a broader talent pool, they still have questions about the quality and the guarantees that nearshore companies can offer.


These concerns often revolve around these suppliers' ability to meet expected quality standards, the reliability of their meeting deadlines, and their effectiveness in communicating and coordinating with the internal team. This is a significant step for any company, and the decision understandably requires careful consideration of the risks and benefits involved.


nearshore company


Statistics on nearshore software development

It is valuable to see the global growth that the IT outsourcing market and the contracting of external software services has had. According to data from Statista, the market between 2024 and 2029 will increase continuously, reaching an approximate figure of 271.7 billion US dollars (+50.22 percent).


“After the ninth consecutive year of growth, the indicator is estimated to reach 812.71 billion US dollars and will therefore reach a new high in 2029. In particular, the revenue from the "IT outsourcing" segment of the IT services market have increased continuously in recent years”, they added in their report.


When looking for a country to hire a nearshore company, the Latin American region is one of the most valued, according to a Deloitte report done in 2022. “With the convenience of remote work, organizations around the world are looking to expand its external workforce to new regions, such as Latin America for close access to the US”, they noted in the document.


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Guarantees that a nearshore company can offer when working on a project

When a nearshore development company works on a project, it must offer several guarantees to assure its clients of the quality and reliability of its services. Here are five essential guarantees they must provide:


  • Work quality

The company must guarantee that the software developed will meet the highest quality standards. This includes implementing rigorous quality assurance practices, extensive testing, and code reviews to ensure the final product is robust, efficient, and bug-free.


Example: A nearshore development company could use agile methodologies and perform unit and continuous integration testing. For example, if they are developing an e-commerce application, they would perform load testing to ensure that the platform can handle high volumes of traffic during heavy sales periods, such as Black Friday, without failures.


  • Deadlines

It is crucial that the nearshore company commits to meeting the established deadlines. They must provide a detailed project schedule and ensure that they have the necessary resources to complete each stage of development within the agreed time, mitigating any potential delays.


Example: When working on a mobile app development project, the nearshore company can present a detailed timeline with specific milestones, such as user interface design, back-end functionality development, and beta testing. If an unexpected problem arises, the company must have the flexibility and resources to redirect efforts and meet initial delivery dates.


nearshore companies


  • Transparency and communication

The company must guarantee open and constant communication throughout the project. This includes regular progress reports, update meetings, and a direct communication channel to address any concerns or necessary adjustments in a timely manner.


Example: If a nearshore company is developing a human resource management system for a corporation, it could establish weekly progress meetings and send biweekly reports detailing what has been accomplished and next steps. Additionally, use project management tools such as Jira or Trello so that the client can see the status of each task in real time.


  • Protection of intellectual property

The security and confidentiality of the client's intellectual property must be guaranteed. The company must implement robust security measures and sign confidentiality agreements (NDAs) to protect all sensitive information and project data.


Example: For a project that involves the development of proprietary software for the financial industry, the nearshore company must ensure that all employees working on the project sign NDAs and that information is stored on secure servers with restricted access. Additionally, they might use data encryption and conduct regular security audits to protect customer information.


nearshore companies


  • Flexibility and adaptability

They must ensure that they have the ability to adapt to changes in project requirements. This includes being able to scale the team as needed and adjust development approaches to accommodate new market demands or strategic changes on the client's part, without compromising quality or timelines.


Example: If a client decides to change the core functionality of a health application mid-project to include a telemedicine feature due to the pandemic, the nearshore company must be able to restructure the team and redirect resources to address the new requirements, ensuring the project stays on track and is delivered on time.


Providing these assurances with concrete examples can help companies feel more confident collaborating with nearshore companies, knowing that their project will be in good hands and that any potential issues will be handled professionally and efficiently.


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