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Nearshore IT: 5 things your firm needs to have in place | Gigavoice Blog

Nearshore IT: 5 things your firm needs to have in place

The nearshore zone

So what’s a nearshore zone? Nearshore zones are countries in the neighborhood of your business and usually shares a border with your own country or regional zone. buy cialis tabs If they are not neighbors in the strict sense of the word, physician a nearshore zone includes two countries within the same time zone (+/- one hour). Further, search countries in the same nearshore zone are usually well connected with airlines that operate daily and travelling from one to another is a simple procedure that lasts no more than a few hours.

Image 2: Nearshore IT_5 things your firm needs to have in place

Nearshore IT vs. IT outsourcing

The IT industry, connected via internet, is one of the most eligible industries for outsourcing. In fact, a few years ago, offshore IT outsourcing was significantly trending. To be honest, outsourcing IT to distant companies helps cut costs. IT outsourcing affects the bottom line.Cheap Jerseys china Costs in India, for example, are a few times lower than those in Western Europe or USA. IT companies started offshoring… a lot. But, there is no such thing as free lunch. In addition to benefits and savings, there were problems too. These include:

  • Time delays – Different time zones are one of the greatest problems of outsourcing IT. Five to eight hours “distance” between client and supplier is almost one working day. That means that feedback or small changes can take hours to “travel”, and that is not at all acceptable, especially in a crisis.
  • Language or cultural differences – Another problem is culture and sometime language. Although Indians (we take India as an example because they are the most popular offshore destination in the world) are great in the English language – the lingua franca nowadays – client countries may speak different language such as French or German. Communication can be a problem.
  • Barrier to personal visits – And we will mention one more disadvantage of offshoring, compared with nearshoring – lack of person-to-person communication. And again the only reason is distance and expensive travel costs.

The solution of all these problems is: Nearshore IT. Problems can be solved in a real time, you can see and check progress on projects in the same day, and evaluate what is happening. And when you nearshore IT, you can not only speed up delivery time, you can save money. Advantages of nearshoring IT include:

  • Cultural closeness
  • Face-to face, on-site visits are realistic
  • Lowered costs
  • Multiple language diversity
  • Quicker delivery time
  • Real time problem solving
  • Real time project management

So what does your company need to do before you start nearshoring?

When the following prerequisites are met, your company is ready to go in search of a nearshore IT outsource partner.

  1. Define tasks well. Good planning is half of any job. Before you start to nearshore IT, complete a full analysis and research within your own company first. Define all aspects of the job or service you want to send to a nearshore company. Make a list of the tasks you are doing, what you don`t want to do and what needs to be done, and then create final list of the tasks that you are ready to send to a partner firm.
  2. Identify the “ideal” nearshore partner. You will need a profile of the ideal nearshoring IT partner, BEFORE you start looking. Define what kind of company this should be, with how many employees and what structure. Is ISO compliance important to you? What are some optional places where the firm can be located (list from preferred to acceptable). Outline other parameters that are important for establishing cooperation with another company.
  3. Find that partner. Start looking at the IT outsourcing market. When you know what you are looking for, it is much easier. Check into the nearshore zone in which you operate. Some compromises will be made to accommodate the options available, but stick to your previously defined plan.
  4. Allocate funds. Before you start, be sure that your company can afford to send IT elsewhere. Nearshore IT can save you money over time, but may be more expensive than offshoring initially. Be aware of that. Also, be aware that nearshore companies depend on funds to operate; they hire and manage all needed personal to fill your needs. Being paid on time can be essential to operations.
  5. Create a team for communication. Communication for an IT project is crucial. If you choose a nearshore outsourcing partner, you can talk in a real time. The team responsible for communication must have one specialist for communication and negotiation, in addition to project management experts that will control the flow and quality of the outsourced job.

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