Reasons to Look for a Nearshore Development Company

Nearshore Development Rising

Nearshoringrefers to the practice of outsourcing business or IT processes to companies in countries that are near or even share a border. The close proximity, same or close timezone, and shared culture and languages are benefits that overcome the idea that shifting work to a different country means a loss of communication. This is particularly true of Central and South American countries compared with traditional offshoring locations like India, China, and Eastern Europe.

In particular, Uruguay has emerged as one of the top providers of nearshore-ready IT staff. Talented companies exist to provide experienced engineering and design work forces that provide a completenearshore IT experience for American companies looking for mobile and web app development.

1. Time Zone Convenience

South and Central American countries have similar or same time zones to many U.S. companies, which has two important advantages: one, collaboration, which is essential in software and app development where face to face team meetings and SCRUM methodologies are part of the product process. Two, if work requires correction, it can be done in the same working day as opposed to overnight in India or China, often without the benefit of communication. In Agile development, which is used for top-level app development, team connectivity is a must.

Similar time zones mean fewer travel costs and the loss of productivity due to jetlag.

2. Language Proficiency

In LatAm, language is not typically a barrier, and the governments of many countries in the region make investments in English-language proficiency from an early age. Uruguay, for example, emphasizes English as a core component of early childhood learning.

3. A Booming Tech Sector

The South and Central American region has enjoyed an explosive growth in tech. In Uruguay, the IT industry expansion has been particularly strong compared to other countries in the region, with a fast process of internalization that started in the 1980s.Uruguay’s universities offer advanced IT programs which in turn creates a well-trained and experienced work force that accommodates global companies like TCS, Netsuite and Infragistics, and other Silicon Valley-esque startups. Uruguay’s ANII (National Agency of Research and Innovation), a government program that promotes the research and application of knowledge, provides funds for research projects, international postgraduate scholarships, and incentive programs to foster a culture of productivity and innovation.

The development of products using Agile methodologies like SCRUM will benefit the most from this skilled labor force. A good nearshore development company will feature experienced developers with projects in its portfolio that were developed using Agile methodologies, as well as a passion for the investment in current technologies, such as AngularJS.

4. Cultural Compatibility

The influence of U.S. culture over the Uruguayan population, which is largely composed of European immigrants, has allowed increased cultural similarities among the Americas. This is an advantage that plays into team cohesiveness and increases the understanding of the business requirements, particularly important for Agile development where communication is key.

5. Stability

When deciding to outsource a process or function, consider the costs and political stability of the nation you’re outsourcing to. The nearshore movement has seen such success in part due to the stability of the Latin America region. The ICT Development Index presented by ITU ranked Uruguay as the country in Latin America with best performance with regard to information and communication technology infrastructure and uptake and the Global Cybersecurity Index ranked the country in the second place in Latin America and eighth in the world.

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