Nearshore, Offshore – Deciphering the Impact of Location

Categories: Agile | India Offshore | Nearshore | Offshore | Outsourcing | South America Outsourcing |

Outsourcing.  Offshore.  Nearshore.   What does it all mean?  And, more importantly, how do you decipher what it means to you and your organization’s goals?

We’re launching a blog series to revisit the basics of outsourcing and expand on the implications of an outsourcing strategy.

A recent Alsbridge outsourcing industry webinar points out just how mature an industry outsourcing is, despite our tendency to view it as more recent.  We think of outsourced services as a model the Indian offshore providers pioneered back in the late nineties, early 2000s.  However, it actually started much early with companies such as EDS and Xerox.  Outsourcing merely refers to services delivered from outside your firm’s four walls.  It’s generally where companies tap into the expertise of a specialist partner.   Ideally, your outsourcing  partner embraces your goals and facilitates those objectives so you ultimately achieve your goals more effectively than if you had done so alone.

Location is often a key component of outsourced technology services.  What implication does location have on software development?  More recently outsourcing has become synonymous with India offshore services.  Offshore in this case generally relates to software engineering services begin done from India.  With the rise of the BRICs (Brazil, Russia, India, and China, and the services expertise available from all of those emerging markets, offshore has taken on a wider meaning.  And indeed, your choices are now not just limited to the traditionally defined BRICs.  Latin America as a whole offers a growing field of technology service providers.  Nearshore refers to technology services offered from closer proximity as compared to India or China services.  Aside from highly talented software engineers, the key benefit of Nearshore, for the North American market, in particular, is that real time collaboration is possible because you are partnering with a country in a similar timezone.  In the case of Argentina and Peru, regions in which Belatrix operates, the time difference may be as little as 60 minutes.  This gives software development teams an ability to collaborate more, without the drawback of late or early, early morning calls.  Belatrix recently put together an infographic that details other important considerations when deciding whether to go “offshore” or “nearshore.”  Check it out and share your viewpoint on locations.

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