It’s no secret that technology has taken control of the world and established its importance to everyday life. From finance to health to entertainment to retail, every industry is trying to keep up with customer expectations through a modern-day approach. While challenging, this showcased the opportunity to engage with customers through diverse, accessible streams. For businesses all over the world, this became possible thanks to digital product development nearshore. Let’s break down why this strategy has gained acceptance throughout every industry.
What is digital product development?
Before tackling why digital product development nearshore is so popular nowadays, let’s understand what this type of development focuses on.
The idea of a digital product centers around a service or asset delivered through software to satisfy customer needs. Digital product development refers to all stages and strategies regarding the conceptualization and ultimate creation of a digital idea.
From social media apps to a company’s websites, this is set to enhance customer experience through functionality and design. While the steps may slightly vary depending on the product, digital product development usually consists of the following process:
- Idea or conceptualization
- Product design
- Prototype creation
- Functionality testing
- Final product launch
What are the benefits of a digital product?
- Creating a digital asset that caters both to your business’ requirements and customer needs through the latest technology.
- Increasing the business’ client base by reaching new potential markets without the geographical limitations a physical product would entail.
- Maximizing scalability and profitability by staying up to date with the industry’s latest standards and users’ demands.
I need a digital product for my business…what to do now?
Knowing which route to take when creating a digital product may seem like a hassle without proper strategy. That’s where the expertise and skills of IT talent come to play, strategizing the best viable way of bringing your idea to life.
This doesn’t mean a business needs to build an in-house tech team from scratch. Options like delegating projects and tasks to a professional team are possible through outsourcing. Let’s go through the specifics of this practice and why it might be the best option for your business.
Going through the basics: what is outsourcing?
To understand what nearshore development is, let’s look at the bigger picture and talk about outsourcing. As a business practice, outsourcing refers to a strategy where part of the company’s work is assigned to an external team or supplier.
By delegating tasks instead of conducting them internally, businesses can increase productivity through time-saving and cost-effective methods. Moreover, this allows companies to expand their services by having access to the skills and resources of a third party.
There are three categories in which we can classify outsourcing:
- Offshore outsourcing: when the external team is in an outside country with a different time zone
- Onshore outsourcing: in this model, the supplier is established within the same region or country
- Nearshore outsourcing: this means the third-party company is located in a nearby region or country
Nearshore outsourcing focuses on partnering with an IT team located within a maximum of a 3-hour time difference. For example, businesses located in Germany can outsource a team based in Poland or Switzerland.
Granted, this doesn’t mean location should be the only driving factor for companies looking for tech talent nearshore. Other criteria to look upon include the resources, skills, experience, and expertise the external team possesses.
3 reasons why you should choose nearshore development
Now, while geographical proximity brings along advantages regarding schedules and lack of language barriers, there’s more to nearshore development. For businesses, the benefits include:
1. Staying agile in a competitive industry
By delegating tasks, the in-house team can focus on other types of projects and activities without decreasing productivity. Moreover, as there are no communication limitations or logistics issues, the external company can take on the project right away.
This enhances the development process by meeting the business requirements and schedule without compromising quality.
2. Taking on cost-effective strategies
Through an external IT company, businesses can quickly find the right fit for their project instead of spending resources on lengthy hiring processes. So, while there’s staff augmentation through this collaboration, there’s no need for additional onboarding, as well as travel expenses.
This is particularly beneficial to small businesses striving to create digital products while staying on budget.
3. Gaining access to a larger talent pool
Combined with a remote-working model, this means businesses aren’t limited to specific locations when in need of a professional team. This brings the opportunity to work alongside tech talent who already have the skills and expertise needed for the project.
With a pinpoint on innovation and productivity, companies benefiting from this business strategy include Google and Tesla.
About to outsource nearshore? An ABC for success
- Acknowledge the project’s goals and set up clear expectations.
- Build an ongoing stream of communication for both teams.
- Create a remote-work culture that showcases the company’s identity.
From developers to designers, nearshore development is about collaborating with top-notch talent all while adopting flexible work schemes. Looking to connect with tech experts? Be sure to check out our LinkedIn or visit us at WillDom.com.