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What is Nearshore?

near•shore ['nirˌ'shȯr]
adjective.

1. Form of outsourcing that refers to services delivered from an adjacent or nearby location.


The nearshore concept started to gain real momentum in 2002 as the Mexican government began marketing the idea within the United States. With time, the world has come to define nearshore as delegating outsourcing business processes and technology support to companies in a nearby country—primarily US companies partnering with Canadian and Mexican companies and Western European countries partnering with Eastern European countries.

Share the Sun
One Team. One Purpose.

The popularity of the Share the Sun workflow model has reemerged during the pandemic as organizations hunt for qualified technology talent with shared time-zone proximity. In contrast to the Follow the Sun model, where distributed teams keep development activities going around the clock, the Share the Sun model leverages a synchronous workflow strategy, giving teams the benefit of real-time collaboration. While a real-time partnership might not always be required, distributed teams who Share the Sun have been shown to successfully replicate the physical in-office experience when live teamwork is required. Simply put, Agile teams get more done when they share the sun.

Why Global Nearshore?

Amidst the most disruptive time in modern history and intensified by the pandemic, the enterprise continues to expedite intelligent enterprise fitness. As a result, the demand for specialized IT, software development, and analytics technology partners will continue to rise. For this reason, technology and business leaders will continue to reevaluate their technology partnerships and look for future-fit partners that can help their organizations quickly scale.


Nearshore Agility at Scale

In 2021, accelerated by the COVID-19 pandemic, organizations large and small have proved distributed agile teams can successfully operate at peak maturity when certain conditions are met. Specifically, distributed agile teams can thrive when they share similar time zones to enable real-time, albeit remote, communication.

 

 

Fun Fact


Softtek coined the term Nearshore in 1997— the year it began working with its first US clients outside of the domestic Mexican market— and has become the underpinning of Softtek’s success for 25 years. As an alternative to “offshore,” “nearshore” quickly emerged as a popular right-fit model for partnering with a third party to manage IT operations from a remote location, with high value, without sacrificing quality.

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Nearshore FAQs

 

Why are nearshore time zones critical for agile engagements?
Geographic proximity and similar time zones have always added value in nearshore engagements. In the past, this allowed teams to work similar hours and meet in person with minimal travel. Today, remote collaboration has quickly become the norm, and more and more organizations are replicating the benefits of face-to-face collaboration with distributed nearshore teams.
What does it mean to access nearshore talent pools?
Due to a severe tech talent shortage, CIOs struggle to acquire and retain specialized digital teams in their time zones. Nearshore providers offer CIOs access to top digital talent in a configuration that optimizes onboarding, training, agile processes, and interaction between product owners and development teams. In addition, cross-functional training and quality of life programs have led to lower overall attrition with nearshore providers.
Do nearshore providers protect my enterprise and customer data?
Due to varying degrees of provider access to sensitive data, information security is now part of all outsourcing service delivery. When evaluating nearshore providers, consider those who have earned a reputation of trust by incorporating infosec practices into all services, applying cross-industry expertise, and maintaining rigorous security certifications.
Does nearshore involve Intellectual Property risks?
The prevalence of digital trade has led to digital rights being newly prioritized on a global scale. For engagements between the USA, Mexico, and Canada, the USMCA (previously known as NAFTA) includes robust new digital rights protections. Similar momentum is growing with foreign trade institutions around the world.
How can service delivery disruptions caused by geopolitical risks be avoided?
First, geopolitical stability scores should be a criterion in every vendor selection. At a bare minimum, consult state department information sources to understand what risks exist in target outsourcing destinations. Second, diversify risk by utilizing multiple geographies to ensure that one geography’s outages (e.g., weather, wars, revolutions) don’t halt overall service continuity. For example, during the pandemic individual countries have been impacted differently and are at varying stages of “open for business.” CIOs should be able to shift workloads between geographies as countries shut down and then re-emerge from pandemic-related isolation.
We often deploy during holiday rushes. How does nearshore navigate critical deadlines?
Although some holidays are celebrated across borders, many are not. This makes nearshore fit to minimize service disruptions and tension during holiday rushes without the need for costly last-minute services to deploy applications and features.
How do nearshore and offshore differ in terms of cost?
Although nearshore rates can be slightly higher than offshore, the overall cost of nearshore engagements is typically offset by the efficiency gains agile teams attain when working close to the US and in the same time zone. Providers with mature and disciplined processes can further augment productivity and savings.

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Softtek is a global company and the largest provider of IT services from Latin America. With a broad portfolio of business-transforming products and solutions, Softtek helps Global 2000 organizations evolve their digital capabilities constantly and seamlessly, from ideation and development to execution.

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