The Top 10 IT Trends Impacting Nearshoring in 2022/23.

The nearshoring of information technology (IT) is a business trend that refers to the movement of IT services and functions from high-cost locations, such as North America and Western Europe, to lower-cost countries in Eastern Europe or South America.

There are several reasons why companies choose to nearshore their IT functions by building Nearshore Development Office. The most common reason is to save money on labor costs. Other reasons include access to a larger pool of qualified workers, cultural similarities between the company and the nearshore country, and political stability.

IT nearshoring has become an increasingly popular option for companies over the past decade as the cost of living and doing business in high-cost countries has continued to rise. In addition, the availability of high-speed internet and advances in communication technology have made it easier for companies to work with nearshore teams.

As we move into 2022, there are several trends that are likely to impact the nearshoring of IT services. Here are ten of the most important ones:

1) The continued rise in labor costs in high-cost countries.

Finding software developers is more and more difficult in western countries. The competition is so big that the companies have to pay more and more to attract the best IT talents. The trend is not going to change in 2022 and in the years to come. This will lead more and more companies to look for nearshoring options in order to reduce their development costs.

2) The availability of skilled workers in lower-cost countries.

As the demand for nearshoring increases, so does the pool of qualified workers in lower-cost countries. This is especially true in countries with a large population of young people, such as Mexico, Brazil, India, Indonesia, Poland, Romania, and Turkey.

For more information regarding nearshore software development services rates please take a look at this article: https://nxtide.com/offshore-development-center/global-offshore-software-development-rates-comparison-by-country/.

3) The increasing use of artificial intelligence (AI) and automation.

AI and automation are changing the landscape of many industries, including IT. As these technologies become more sophisticated, they will increasingly be used to replace human workers in a variety of tasks, from customer service to software development. This trend is likely to continue in 2022 and beyond, which will make nearshoring an even more attractive option for companies looking to reduce labor costs.

4. The growth of the gig economy.

The gig economy is a term used to describe the increasing prevalence of short-term, contract-based work. This type of work is often done remotely, which makes it well-suited for nearshoring. In addition, the gig economy is growing rapidly, which means there will be an increasingly large pool of workers available for companies to choose from.

5) The rise of the remote worker..

The COVID-19 pandemic has forced many companies to allow their employees to work remotely. This trend is likely to continue in the future, even after the pandemic ends, as more and more companies realize the benefits of remote work. This will make it easier for companies to nearshore their IT functions, as they will no longer be limited to workers in a specific location.

6) The rise of edge computing.

Edge computing is a term used to describe the process of storing and processing data closer to the devices that are generating it. This is often done in order to reduce latency and improve performance. As more and more devices are connected to the internet, edge computing is becoming increasingly important. This trend is likely to continue in 2022 and beyond, which will make nearshoring an even more attractive option for companies looking to reduce latency and improve performance.

7) The increasing demand for cloud services.

Cloud computing is a term used to describe the delivery of computing services over the internet. These services are often delivered on a pay-as-you-go basis, which makes them more flexible and cost-effective than traditional on-premises solutions. The demand for cloud services is growing rapidly, and this trend is likely to continue in 2022 and beyond. This will make nearshoring an even more attractive option for companies looking to reduce their IT costs.

8) The growth of the Internet of Things (IoT).

The Internet of Things (IoT) is a term used to describe the growing network of physical devices that are connected to the internet. These devices can include everything from cars and appliances to manufacturing equipment and medical devices. The IoT is growing rapidly, and this trend is likely to continue in 2022 and beyond. This will make nearshoring an even more attractive option for companies looking to reduce their IT costs.

9) The increasing use of Big Data and analytics.

Big Data is a term used to describe the large and growing volumes of data that are being generated by businesses and individuals. This data can be used to improve decision-making, identify new opportunities, and optimize processes. The demand for Big Data and analytics is growing rapidly, and this trend is likely to continue in 2022 and beyond. This will make nearshoring an even more attractive option for companies looking to reduce their IT costs.

10) The increasing demand for cyber security.

As the world becomes increasingly digitized, the need for cyber security is also increasing. This is because more and more businesses are storing sensitive data online, which makes them vulnerable to attack. The demand for cyber security is growing rapidly, and this trend is likely to continue in 2022 and beyond. This will make nearshoring an even more attractive option for companies looking to reduce their IT costs.

*11) The rising importance of nearshoring companies.

Nearshoring business is getting more mature and consolidated. The demand for this type of B2B service is rising. This means that more businesses are turning to nearshoring companies for support in local markets. This trend is likely to continue in the future, as more businesses realize its benefits. This will make it easier for companies to find the right partner for their IT needs and will make nearshoring an even more attractive option.

Build-Operate-Transfer option.

There are a number of different ways that companies can set up their offshore / nearshore development office in Poland. One option is the Build-Operate-Transfer (BOT) model. Under this model, the local software development company (partner) sets up and operates the offshore / nearshore development office for a period of time (usually 3-5 years), after which it transfers ownership of the office to the client. This BOT model has a number of advantages you can read in this article.

Looking for a solid nearshore software development company?

Opening a Nearshore Software Development Office in Poland can be a great opportunity for businesses looking to outsource their software development projects. By partnering with a reliable and experienced nearshore development company, you can get access to a team of skilled software developers who can help you deliver high-quality projects on time and within budget.

Looking for a Nearshore Development Office in Poland? Contact us now! We are a reliable and experienced nearshore development company with offices in Krakow, Warsaw, Katowice and more.

About Us:
NxTide is a specialized company focusing on building local, Software Development Teams or larger Software Development Centers in major cities in Poland. We take care of all recruitment and quality control processes making it faster and more cost-effective for you. Here is some more information about our expertise: – Over 7 years experience in creating a variety of software development teams – Over 60 teams and 300 engineers successfully hired and deployed – Several dedicated HR and IT Project Management Teams acting on your behalf.

Please take a closer look at a dedicated and flexible offer we have prepared based on market needs:
1) Software Development Teams: dedicated to clients looking to expand their software development teams or create small remote teams from scratch.
2) Offshore Development Center: dedicated to larger and permanent projects. We’ve implemented the innovative Build Operate Transfer model to make the whole process faster, more efficient, and transparent.
3) Nearshore Software Development Office: dedicated to larger and permanent projects within the same region, continent.

Create a Nearshore Software Development Office with NxTide

Over our 7-year company activity we have helped many US and EU companies to successfully build Software Development Teams and Software Development Centers in a variety of locations in Poland.
Interested? – Let’s discuss your case on a call.
Marcin Dziedzic, CEO of Pragmatic Coders and NxTide.

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