Outsourcing has contributed to a further leveling of global inequalities, as it has led to general trends in industrialization in the Global South and deindustrialization in the Global North.
The dizzying rise of certain countries as a nearshore magnet is evident, especially the one aimed at outsourcing services. Some of the reasons for this are its macroeconomic stability, competitive costs, infrastructure, and a strategic geographic position.
Nearshore and its advantages
- Operations cost
- Talent source
- Delivery term
- Flexibility in regulations
The increase in industrial efficiency that characterized development in developed countries occurred as a result of labor-saving technological improvements.
Basically, the term nearshore refers to the outsourcing of software developers from abroad. Knowing that there are markets with qualified and accessible talent, many venture investors, small business owners, and startups decide to go down this path and outsource their developers from abroad.
In most cases, this means working with companies located in your home country. The advantages of software development on the ground are obvious: you can work with trained teams in your own country and speak your language.
However, there is a major concern with this option: cost.
While offshore and nearshore development costs less, onshore software developers are expensive and therefore cannot compete with the prices of nearshore and offshore development companies.
Nearshore an increase in remote development team
Thanks to increasingly advanced technology for developers working remotely or a great need to develop high-quality software instead of hiring teams for internal development, the new trend is increasing in recent years.