Nearshore Software Development Services

The advantages of Nearshore Software Development Outsourcing today are undeniable

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In the past decade or so, the number of viable options for outsourcing software development has exploded. Most outsourcing models fall into one of three categories: onshoring, offshoring, or nearshoring.

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While offshoring to Asia or Eastern Europe has long been appealing to businesses for its low-cost labor, nearshore services have emerged as a superior alternative, allowing for smoother collaboration and the use of Agile development methodologies. As most development models have moved away from the linear Waterfall methodology to Agile’s flexible, iterative approach, the rewards of nearshoring have come into full focus.

Agile, done right, requires constant communication and collaboration between in-house and outsourced teams. In other words, proximity matters. In these next few sections, we’ll look at some of the advantages of working with a nearshore software development company. Then, we’ll dig into the evaluation criteria for choosing the best partner for the job.

Four Essential Qualities of a Good Nearshore Services Company

A graphic featuring 4 circles to explain the 4 essential qualities of a neashore partner

1. Experience

Nearshore services companies must use a mature, disciplined approach to software development for their total cost-of-engagement (TCE) to compete with low-cost offshoring models. Nearshore rates are generally higher than offshore rates, which means service providers must provide more value to the client than low-cost, offshore vendors to keep earning their business.

For example, the ability to work in the same time zone as your nearshore partner allows for greater operational efficiency than offshoring. Efficiency also increases as a provider gains more experience with long-term engagements in the form of service level agreements (SLAs).

On the client-side, transitioning to nearshoring means that they can measure their efforts in terms of results instead of the time and resources spent on a project. Look for nearshore service providers with experience working collaboratively, and a focus on developing long-term relationships that are mutually beneficial to the provider and client.

The traditional method of developing software is commonly known as “waterfall” development, since the project progresses steadily through sequential stages, including conception, initiation, analysis, design, development, testing, and maintenance.

Waterfall is fine for handling short, straightforward projects, but when you’re working on a project where requirements change rapidly, this process can cause delays and quality issues.

2. Communication

The geographical proximity between the client and service provider allows for greater collaboration during the development process. This advantage is a major reason for the recent success of nearshoring as compared to offshoring.

Ventoro Institute, a global sourcing research organization, reports that clients often avoid face-to-face meetings with their offshoring partners because of the time and expense required for an international trip.

However, live communication is essential for the success of an IT project. It allows customers and vendors to share knowledge in a sophisticated manner, and identify the best solution for a particular problem.

Some of the newest nearshoring companies provide interactive IT teams that work directly with their clients’ employees, thus freeing them from the rigid hierarchy and complex procedures that characterize traditional project management.

When you work with a nearshore partner and can communicate more frequently and at greater length, your nearshore partner becomes intimately involved and invested in your success and your business.

Tiempo Software Development Teams speak English well and are intimately familiar with the expectations of the modern American workplace. English proficiency and cultural alignment accelerate relationship building and integration with your in-house team.

Two Tiempo Dev devlopers working on a project

3. Quality and Productivity

Time zone incompatibility has long made it difficult to develop quality software within a reasonable timeframe. When you’re working with a team that operates on the other side of the globe, developers often end up working at night, putting them at risk of burnout, which in turn, undermines the quality of the end product.

Software errors are typically the result of stress, and many programmers working for offshore vendors will burn out before the project is complete.

A nearshore service provider works on the same schedule as your in-house team, allowing them to fix bugs faster, hop on a quick call, and, ultimately, shorten the time-to-market schedule for both new and established clients, simply by being in closer proximity.

Employee turnover is a problem for the software development industry.

According to the 7th Annual Conference on Information Science, Technology & Management noted that the annual turnover for Indian software developers is typically in the range of 30-40%, much higher than the average turnover in Mexico.

 

This difference in turnover means that a nearshore services company may have an advantage when it comes to developing a talent pool without fear of losing staff members in the process.

Mexico’s proximity to the United States means that the two countries share many cultural similarities. Mexico and the US also share time zones, making daily standups, and ad-hoc communication seamless.

Additionally, short travel distances allow for face-to-face meetings during critical stages of projects. As such, it’s not unusual for our teams and our client’s teams to co-locate for portions of a project.

The ability to work directly with clients allows developers to be more responsible for their actions and more responsive to changes in the client’s requirements.

It also helps developers understand that their pay and other benefits are directly dependent on the client’s level of satisfaction. In the case of traditional outsourcing, developer incentives are more likely to depend on employees of the service provider, such as IT directors, project managers, and team leaders.

This difference in fiduciary responsibility improves the productivity and efficiency in the workplace of a nearshore partner.

4. IP Protection

Another thing you’ll need to think about is how your outsourced service provider handles intellectual property (IP) protections.

IP is a vital part of outsourcing because an organization’s ideas must be protected under law if it is to develop software in another country.

US laws offer strong IP protection, which is one of the major factors for its success in software development. Mexico’s laws also offer IP protection on a level unmatched by many other popular outsourcing locations, especially when it comes to patents and trademarks.

A graphic that explains that Mexico has respect for IP

 

In addition to its own laws, Mexico is a member of many multinational agreements that protect IP including the USMCA, as well as the following international agreements:

  • Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks
  • Lisbon Agreement for the Protection of Appellations of Origin and Their International Registration
  • Paris Convention for the Protection of Industrial Property
  • World Intellectual Property Organization

Questions to Ask Potential Nearshore Service Providers

A map of Latin America with a green circle around the USA and Mexico

If the nearshore partners you are considering have the four basic qualities in place we just mentioned, you’ll want to start digging deeper to narrow down your list of potential vendors.

When you meet with a potential nearshore services provider, you need to interview them like you would any prospective business partner or employee candidate.

Here’s a look at some questions you should ask to ensure you make the right decision.

If the answer is yes, you’re off to a good start. While it might not seem like a huge deal, a domestic point of contact can set you up for a smooth experience with fewer bumps along the way. Partnering with a US-based nearshore development company leaves less room for confusion, as you’re working with a vendor that operates under the same laws, uses the same currency, and speaks the same language.

Look for a company that is large enough to scale and offers the resources to support your business as it grows.

Because outsourcing has become a booming, global industry, you’ll want to make sure that you don’t partner with a company that is brand-new and can’t yet support top-talent or invest in the right tech stack to add value to your business.

At the same time, you’ll want to make sure that your outsourcing partner offers personalized, responsive support. Ask them how many projects they take on at a time and what they do to get to know the unique needs of each client.

Ultimately, your goal is to find a partner with a development team that acts as an extension of your own. That requires them to have a specific understanding of your company history, customers, and goals for the future.

Because the outsourcing industry has exploded in recent years, many development companies have cropped up, hoping to capitalize on the boom. Unfortunately, that boom can sometimes be problematic, with many companies popping up overnight and disappearing in a flash.

Make sure you research your options before signing a contract. Otherwise, you might end up with a partner that disappears with your money and never delivers the final product.

Not sure what to ask? No problem. Here are a few questions to ask before you commit.

  • How long has this company been in business?
  • What industry awards have they won?
  • Have they grown continuously or has business slowed down in recent years/months?
  • Can they share whitepapers or testimonials to back their results?
  • What kind of clients do they work with?
  • Do they focus on a particular industry?
  • Who are their largest clients?

Before you commit, you should know exactly what your potential partner’s onboarding process looks like and how it aligns with your team’s own processes, expectations, and goals.
Here’s a look at some of the questions you might ask a potential nearshore partner to learn about the client onboarding process:

  • How does the nearshore partner ensure that their team offers innovative solutions?
  • Do their skills align with your existing (or ideal) tech stack?
  • How do they handle broad, complex projects while also delivering a powerful end-user experience?
  • How well can they document their processes and commitments, and what assurances are in place to ensure your results are accurate, reliable and repeatable?
  • What metrics do they use to measure success?
  • How do they approach communication? What tools do they use to keep your team informed
  • How often will you receive status reports?
  • Can they offer proof of past successes?

When you are vetting nearshore vendors, it is important to know that they are going to streamline your development process for faster time-to-market and resulting revenue.

Unlike dated software development models that can take 12 months to implement and even longer before you start to see a return on investment, Agile’s bite-sized deliverables mean faster timeframes and profits.

Do they use an Agile Development model for faster results to streamline software development and outcomes? (If the answer is no, then yours should be too… keep looking.)

When you’re looking to expand your development team with Nearshore Development, you aren’t just looking to increase agility, but also velocity.

Velocity (V) is a crucial software performance indicator and is calculated using the following formula:

Velocity = Units of Effort Completed / Sprint.

  • Velocity. Velocity explains how much a given project team has been able to achieve over a defined period or iteration.
  • Units. Because no two Agile projects are alike, it’s important to specify what ‘units’ mean. Examples can include use cases, user stories, test cases, new functionality, or bugs.
  • Sprint. Sprint is defined by the period of time in which the sprint is accomplished. For Agile, this is usually around two weeks, but you might opt to define it in hours.

One of the greatest advantages of Agile Software Development is its immense potential to increase Velocity. High-Velocity levels mean consistent releases of product into the market, balanced Business and IT stakeholder goals, and satisfied end-users.

Velocity measures how effectively a nearshore software development partner is in completing their objectives (or user stories) during a given sprint, or series of sprints.

In other words, higher quality software means better performance and fewer unexpected snags throughout its lifecycle.

The team needs to have open communication with the client and a strong grasp of the development processes it will use. Each delay in implementing the code also delays the development of any functionality dependent upon that code. Coding delays, therefore, increase the risk of undesired consequences once they are implemented. Intertech classifies work quality for software development into code quality, process quality, and inter-team communication.

Quality code should be clean, extensible, and documented. It should also adhere to accepted coding standards, including automated testing and version control.

Applications should be highly modular, with sufficient in-line documentation to adequately describe each module’s function. In-line comments are much easier to keep current than separate documentation since the programmer can easily update comments when updating the code. The development process should be well-organized and highly repeatable. It should also be transparent, allowing you to determine how the developers are performing their work. The agile development methodology also relies on simple processes that will not impede productivity.

Effective inter-team communication is essential for creating bug-free code that provides usable functionality for the user. It also prevents developers from writing good code that solves the wrong problem.

Individual developers must, therefore, communicate directly with each other as well as the project manager and other stakeholders.

A green graphic of a hand with people above it

Get Better Results by Partnering with Tiempo for Nearshore Software Development

Tiempo Development has emerged as a pioneer and leader in the delivery of nearshore software development services. Since 2006, we’ve refined our approach to attracting, retaining, and developing high-performing teams of some of the top software engineers in Mexico.

Working with a nearshore services partner like Tiempo Development provides a long list of benefits, including faster-time-to-market, easy communication, and a team of professionals that fit in seamlessly with your in-house employees.

Finding and hiring great developers is only the tip of the iceberg. Cost, quality, dependability, and process are all critical factors.

Our clients turn to Tiempo Development for:

  • Cost-Effective Software Development Resources
  • Dedicated High-Performing Agile Teams
  • Commitment to Ultimate Client Outcomes
  • Fast Ramp Up and Seamless Integration
  • Expert Resources Available in Almost Every Technology; Java, Python, .NET, React, Angular, PHP, etc.
  • Headquartered in the United States

Contact us today to learn more about our nearshore software development services.

Software Development Centers Designed for Tight Collaboration

Tiempo operates four world-class development centers in Mexico.  Each modern center is built out to improve the communication and collaboration of our top talent with our US clients.  Workspaces and workflows are designed to instill and optimize the attributes of team building, motivation, accountability, problem solving and integrity.

 

Tempe Nearshore Software Development Center

US Headquarters

 

Tiempo Development LLC
1050 W. Washington Street, Suite 115 Tempe, AZ 85281 USA(602) 910-4646

Monterrey Nearshore Software Development Center

Monterrey

 

Development Center
Val Paraiso 49 Col. AltaVista Monterrey, Nuevo Leon, México+52 (811) 088-9827

Guadalajara Nearshore Software Development Center

Guadalajara

 

Development Center
Justo Sierra # 2464 Ladrón de Guevara Guadalajara , Jalisco 44600, México+52 (333) 615-00-97

Development Center

Guadalajara

 

Development Center
San Dionisio 25-B Jardines de San Ignacio Zapopan, Jalisco 45040, México+52 (333) 647-26-71

Hermosillo Development Center

Hermosillo

 

Development Center
Blvd. Antonio Quiroga No. 547 Local 23 Corner of Blvd. García Morales. Col. El Llano Hermosillo, Sonora 83210, México+52 (662) 260-96-75
 

ABOUT TIEMPO DEVELOPMENT

At Tiempo, we are making the business of software development easier and more affordable with a unique combination of a nearshore business model, agile methodology, and advanced talent management. Our Development teams engineer powerful technologies that align with the goals and strategies of our customers for both their internal and public-facing development initiatives. Tiempo supports companies in launching software releases sooner without draining important resources.

Learn how we can fast track your projects and increase your ROI within weeks. If we’re not 100% certain we can fundamentally improve your performance, we’ll help you find someone who can.

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