Is the Nearshore Trend All about Cost?

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To say that nearshore outsourcing is a hot trend right now is to state the obvious. Whether you are talking about technology, the legal industry, or even the energy space, companies of all scopes and sizes are seriously looking at trading in their offshore outsourcing partners for new nearshore partners. iTexico, a nearshore services provider in Austin, has firsthand experience of this growing phenomenon.

The nearshore trend began in the previous decade but did not start gaining steam until just a few years ago. Now it seems to be spreading like wildfire. As it does, experts are stepping back and asking whether this trend is really just about cost.

I don't think so. Sure, iTexico works with a lot of clients looking for nearshore outsourcing for everything from Android and iOS development to cross-platform titanium development. And yes, many of these clients are doing so because outsourcing is a more cost-effective means of accomplishing their goals. The question is why they choose the nearshore model rather than the traditional, decades-old model of offshore outsourcing.

A Technology Industry Redo

To gain a little insight into what's going on in technology; consider a 2013 piece published by Computer Weekly on its website. The emphasis of the article was the idea that offshore outsourcing was for large enterprises while nearshore was for smaller ones. On its face, the argument seems reasonable. But once you dig a little deeper, you find out there is more to it than that.

The Computer Weekly piece asserted that large companies outsource primarily to save money, making offshore locations like India very attractive. On the other hand, small startups outsource in order to get the talent they need in the shortest time possible. They are not necessarily worried about cost while spending investor money. This view seems rather shortsighted, if not somewhat fatalistic.

Still, if the Computer Weekly argument is true, then there is something deeper here. Big tech companies that only outsource to save money may be shooting themselves in the foot by not taking advantage of new ideas, new ways of doing things, and innovative solutions to old problems. They are stuck in the same rut of using the same outsourcing contractors who never seem to change things up.

On the other hand, startups are all about a redo complete with new ways of thinking. They are not relying on the same outsourcing partners their competitors have relied on for years. Rather, they are looking for partners with the same mindset and goals they have while going above and beyond cost savings, which can be reached through undertaking nearshore practices.

Nearshore Is Fresh and Exciting

iTexico's role as a provider of nearshore services in Austin gives them access to a lot of different clients with a vast array of goals. Yet the one thing that seems common to most of them is a desire for something fresh and exciting. Clients want flexible outsourcing solutions that fit their company culture yet do not sacrifice innovation and quality. Itexico is one of those leading companies that will satisfy these needs through their affiliation with multiple partners in Mexico and therefore the client's interest is immediately piqued.

At the end of the day, evidence shows that nearshore outsourcing is about more than just saving money. Indeed, saving money is a significant factor in motivating companies to outsource, but in the arena of technology and mobile app development, companies also want partners who can deliver cutting-edge results that will lead us all into the future. That is what nearshore outsourcing provides. And by the way, nearshore does it exceptionally well.

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*by andreascy*

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