The Value of Nearshore Software Development Opportunities: Innovation & Performance

The typical mindset when considering IT outsourcing partners is to look far away, but it may be more beneficial to find a neighboring team through nearshore opportunities and not just because of the usual benefits.

There’s no debating the value of outsourcing as it pertains to software development. In the NextGen Global Outsourcing Survey conducted by Deloitte, 78 percent of respondents indicated that they feel positive about their outsourcing relationship and the advantages it offers.

There are many different types of IT outsourcing services, some of which are more common than others and provide greater value, depending on your goals for outsourcing. Nearshore software development, for example, is an extension of the outsourcing industry that does have its differences from conventional applications like offshoring.

What is nearshore development and how is it different?

Conventional outsource web design involves a direct relationship with a third-party or “provider” outside of your company or team. Outsourcing is a general term that encompasses varying degrees of third-party engagement.

For instance, inshore and offshore are two separate forms of outsourcing. Inshore means you’re working with a third-party located in the same country as your business or organization, while offshore means exactly the opposite. Then there’s dualshore, which is a hybrid of the two — teams are often split between separate locations.

Comparably, nearshore is a similar concept where you’re still working with a third-party; only they’re are located in a neighboring country or region. For instance, a U.S. based company working with another party in North or South America would be a nearshore engagement.

It may seem similar, and by all rights it is, but there are some exclusive benefits of adopting a nearshore relationship as opposed to offshore or even inshore.

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Traditional benefits of nearshore software development

For North American based companies, nearshore development relationships with Latin America partners are particularly attractive.

For starters, time zones remain relatively similar. This is a direct improvement over conventional offshore outsourcing because there are considerable challenges whenworking with a partner or company that operates under a separate time zone. This can also hinder direct relationships and communication when you have a 12 hour difference or more, especially when collaboration hinges on prompt or immediate responses, like it outsourcing.

As PSL Corp says, “we are in the Americas, [so] we can be agile because we are awake when you are awake.” That’s exactly true when it comes to nearshore partners.

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Also, because the region is similar, there are fewer language and cultural barriers to work through. You may be working with a partner in Colombia, as is common with nearshore relationships, with workers who use proper English, and live in a near identical time zone.

In fact, working with companies located in Colombia is a good move for any company considering outsourcing. According to the Global Location Services Index, which measures the suitability for outsourcing services by looking at metrics that indicate which countries display the, “strongest underlying fundamentals.” Colombia ranks 10th on the list, up 10 slots from 2016.

Then, of course, there are much lower rates or costs associated with outsourced development. In fact, lower operating costs are one of the major reasons any organization or business decides to outsource IT and software development. A whopping 59 percent of businesses cite that “cost-cutting” is the primary reason for outsourcing projects.

In Latin and South America, highly skilled programmers or developers work at much cheaper hourly rates. In these countries the average wage is already lower because the cost of living is lower, but often the local currency is weaker than the American dollar. Essentially, this means you get much more for a lot less when you choose a suitable outsourcing partner. This also happens to be what provides nearshore IT development a leg over inshore or local outsourcing and development opportunities.

But, there’s more to it than that

The benefits of outsourcing, and developing a long-term partnership with the right provider, go a long way in allowing companies to innovate and maximize performance. One way this becomes possible is by investing the money saved into R&D, making it possible to innovate faster. The other possibility is by outsourcing the non-essential items and allowing your skilled teams to focus on what they do best.

Then, there’s another way, evidenced by the responses in the Deloitte’s Global Outsourcing survey. “Some companies, [35%] for instance, look to their service providers to help them capture and integrate marketplace advances, such as tapping creative methods for improving quality and enhancing the user experience, to propel competitive advantage at a velocity they could not otherwise achieve by themselves. The savviest organizations use their providers to help them find, filter, and manage the many transformative products and services the marketplace invents to improve business performance.”

Your nearshoring partner is not just another vendor, but rather a valued partner committed to innovation and anticipating and working towards achieving shared goals. It makes sense, what’s good for you is good for them. More and more, these relationships are becoming crucial to the success of organizations. Find the right partner and start innovating, the success of your organization depends on it.

Say “yes” to those nearshore outsourcing opportunities

Despite its many benefits, many companies or teams overlook the idea of nearshore IT outsourcing. The typical mindset dictates that “outsourcing” means shipping the work far away, such as to a completely different continent in the far East.

Just be aware that’s not necessarily the case, and you can definitely find a suitable partner or collaborator in a neighboring country.

About PSL: With 30 years of experience and 500+ engineers, we focus on open and transparent long term relationships, embracing your goals as our own. Let us help you face your most complex software engineering challenges by deploying high performance outsourcing teams in your same time-zone. https://www.pslcorp.com/outsource-web-development/

Software Outsourcing in 2018: Some of the most popular trends coming your way

As digital technologies continue to mature in 2018, growth in the software outsourcing industry will accelerate in response to these technological advancements. Businesses are looking to enhance their competitive strategies, improve their technological infrastructure, and increase productivity and efficiency. To do so, they need access to advanced, automated digital technologies and skilled resources.

There has been increased adoption of nearshore business solutions in 2017, with businesses spending a significant amount of their IT budgets on outsourcing; up from 10.6% in 2016 to 11.9% in 2017. IT outsourcing companies

Software outsourcing in Colombia is enabling organizations to benefit from automation, improved digital capabilities, and skilled resources, with the added benefit of geographic closeness for real-time communication. A $6.8 billion IT industry has developed in Colombia.

IT outsourcing companiesKey 2018 trends

Outsourcing promotes digital transformation across key areas of business processes, including governance, cloud computing, automation, and user experience. In 2018, some key trends that will augment these core functions include:

●      Nearshoring: More companies are choosing to partner with software outsourcing providers who are located in the same time zone to better facilitate their development team needs.

●      Cloud computing: Businesses are relying on cloud computing to accomplish all of their diverse business goals, both now and moving into 2018. Cloud demand will comprise 60% of IT market growth through 2020. It’s critical to choose an outsourcing partner who can meet your particular cloud needs while maintaining cloud as part of their delivery model.

●      Machine learning and AI adoption: Utilizing a real-time data and analytics infrastructure provides businesses with the ability to apply analytics towards increasing efficiency levels and augmented human capabilities. AI and Machine learning applications were adopted by the majority of technology vendors in 2017, and applications will continue to grow in 2018.

●      Big data: To benefit from big data, businesses are looking to outsourcing solutions, which gives them the capability to make the most of their data to support digital transformation strategies without overly taxing internal resources. Risk assessment, forecasting future events, personalizing the customer experience, and creating a better foundation for data governance and management are just a few of the reasons why big data is proving to be an indispensable tool for businesses.

●      Security: Outsourcing IT security has been quickly growing as businesses want to divert possible threats. By utilizing experienced IT specialists with the right skill sets to successfully mitigate and manage threats, organizations are more able to improve software functions while maintaining security.


●      Personnel: Hiring and training skilled developers and IT specialists can be a costly endeavor, and companies can obtain diverse assets, products, and services via software outsourcing providers while benefiting from cost savings.

Accelerating digital capabilities in 2018

With nearshore outsourcing, companies can benefit from scalable, secure digital technologies that enhance customer experiences, increase product and application development, improve decision making processes, and increase agility without having to make substantial organizational and structural modifications.

For more info, please visit https://www.pslcorp.com/it-outsourcing-services-companies/

What to Consider Before Leaping into Microservices

Step one in a microservices strategy is to figure out whether microservices are right for your organization.

In the ever-changing tech industry, companies know they have to ride some swift rapids to stay afloat. In fact, agility is one of the most important keys to business success. If a company takes too long to react to change, an innovative startup will most definitely swoop in to take their market share.

software development outsourcingWhile microservices isn’t the most recent buzzword to hit software development, it’s received a lot of attention lately as a viable option for companies wanting to evolve their capacities and stay on the cutting edge. Microservices is a development architecture that deploys applications as modular services, which then run different processes and communicate through flexible protocols. It allows for swifter updates and rapid, complex expansion. It’s exactly what companies need when they scale and put new business processes into action.

Sounds useful, right? It is. But before leaping head first into microservices, you need to make sure your company is prepared for the challenge. Here’s what to consider before implementing the architecture, and how to make the most of it if you do: software development outsourcing

Look closely at your business structure. Are you large enough for your development teams to work separately on complex projects? If not, you probably don’t need microservices. According to Chief Scientist at ThoughtWorks Martin Fowler, the productivity cost of microservices is only worth undertaking for large and complex software projects.

“Unless you’re faced with that complexity, remember that the microservices approach brings a high premium, one that can slow down your development considerably. So if you can keep your system simple enough to avoid the need for microservices: do so,” he says.

Determine if you need to deploy components independently via offshore software development. If you constantly have at least two domains in the software your deploy — that represent completely separate business capabilities or processes — you have good reason to adopt microservices. Doing so will enable you to create an independent development lifecycle for various components of your application, which allows for them to be updated or deployed without affecting other components of your application. Additionally, you can code the domains using the language that makes the most sense for that component. However bear in mind that these situations require more single component pieces to be dynamically managed by specialized development teams. So, make sure you have enough talent on staff or the budget to afford them.

Consider whether your team has the right skillset. A microservices architecture means you can create smaller development teams that specialize in certain areas of expertise. This should increase the ability to constantly release new functionalities to market, giving a competitive advantage.

However before making the switch to microservices, think about how experienced your players are. Is your team mature enough to work with continuous deployment and continuous integration? Are they well-versed in DevOps culture? If your team doesn’t currently exhibit these skillsets, work on building a more robust group of engineers or, find external partners who can help to complement your team.

Be realistic about your business’s roadmap. The ability to exponentially scale has made some of the largest companies into what they are today. Think Airbnb for example, which grew from an air mattress rental website to a $30 billion data-driven marketplace in less than a decade. While it’s important that growing companies remain agile, not every organization has a big need to scale. If you honestly don’t need to address complexity yet, don’t push yourself to adopt microservices.

Be realistic about where your business is headed, at least for the short term, and don’t make your development process more complicated than it needs to be.

So, you’re 100% certain microservices is for you. Here are some quick tips:

●      Once you implement a microservices architecture, be sure to make extensive use of Domain Driven Design, especially the concept of Bounded Contexts. These are clear boundaries that separate a domain, or the subdomain it uses and clearly define the interrelationships between the participating contexts.

●      There is no golden rule about how to define Bounded Contexts, as this depends on the domain you’re working on. However, a context map is a good technique in general.

●      Many experts propose using small microservices. But the size should really depend on how cohesive the concepts are within the domain model, within their Bounded Contexts and the ubiquitous language used. Essentially, each microservice should represent a business capacity. Focus on completing that component well, independent of other services.

●      Make sure you align your development team structure to the Bounded Contexts you have defined. To reap the benefits of a microservice architecture, your teams should be built around business capabilities. You should not develop transversal teams that create new silos and reduce the independence of your delivery teams.

While it’s tempting to quickly jump on board with hot software trends, leaping into microservices head first may not be the wisest move for every company. Every business is different — whether it be in size or skillset — and each needs to find the unique solutions that work best for them. Through keeping in mind your business structure, determining if you need to deploy components independently, analyzing your team’s skillset, and being realistic about your business trajectory, you’ll be able to determine if microservices are right for you, or whether it will only make your processes more complicated.

For more info, please contact https://www.pslcorp.com