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Scaling Software Development Teams with Nearshore Developers.

When a software team reaches a certain point in its development process, the necessity for scaling becomes evident. This is where things get difficult. When it comes to expanding their business, many firms fail.

The reasons for this can be manifold but are often due to a lack of understanding of how to properly scale a software development team. In many locations, this process might be very difficult due to the shortage of local software developers and high employment costs.

One option that has become increasingly popular in recent years is to supplement onshore developers with nearshore developers. In this article, we’ll explore what nearshoring is, the benefits it can offer software development teams, and how to get started with nearshoring if it’s the right choice for your business. Let’s now start from the beginning…

The software engineers shortage.

Software developers shortage is a global issue. The US Bureau of Labor Statistics predicts that there will be a 1,3 million shortfall of software developers by the end of 2022. This is not just affecting the United States; it’s a global trend.

The lack of software developers is having an impact on businesses across the world, with 73% of respondents to a Stack Overflow survey saying that they’re experiencing difficulty finding software developer talent for their teams.

The rising software engineers rates.

With such a high demand for software developers, it’s no wonder that the cost of hiring them has also increased. In the US, the average salary for a software developer is now $110,000 per year. In some parts of the country, like San Francisco, this number is even higher at $152,000 per year.

The high cost of software developers is not just restricted to the United States. In the UK, for example, the average software developer salary is now £47,000 per year. This is an increase of 9% from 2021.

The software developers’ salaries are expected to continue to rise in the future as the demand for their skills increases. This is good news for software developers but bad news for businesses that are trying to scale their software development teams.

This is where we come to the concept of nearshore software development as a solution to tackle the problem.

What is nearshore software development?

Nearshoring is the outsourcing of work to contractors in neighboring countries. This is in contrast to offshore outsourcing, which involves sending work to contractors in distant countries (often ones with much lower labor costs). The term contractors may be misleading here, as most of the companies decide to build the whole software development teams or even nearshore offices which indicates a long-term strategy. We could say that the trend has started by startup companies by hiring single nearshore/offshore developers to support their projects remotely and through the years it has spread among more sophisticated, legacy industries.

There are many businesses that use nearshore software development teams to scale capabilities. Some of the most famous examples are Google, Intel, Microsoft, Siemens or Cisco. But is it only limited to the tech industry? The answer is no – any company can use nearshoring to support software development. The best examples are in the automotive, finance or retail sectors (Mondelez, Kraft, Kitopi, Uber).

The benefits of nearshore software development.

There are several benefits to nearshoring software development work, as opposed to doing everything in-house or offshore outsourcing. Perhaps the most obvious benefit is cost savings. When done correctly, nearshoring can save businesses a significant amount of money. This is because developers in neighboring countries often charge lower rates than onshore developers (although this is not always the case).

Another big benefit of nearshoring is increased efficiency and productivity. This is because nearshoring software development teams are often located in the same or similar time zones as the businesses they’re working for. This makes communication and collaboration much easier, which leads to a more efficient and productive workflow.

Finally, nearshoring also offers businesses access to a larger pool of software developers. This is because businesses are not limited to hiring developers from their own country. They can also hire from neighboring countries, which gives them a much larger pool of talent to choose from.

Building a nearshore software development team.

The benefits of nearshoring software development are clear. But how do you go about setting up a nearshore software development team and manage people in other country? We will try to shed some more light on this matter in the following paragraphs..

Here are a few startegic tips:

1) Choose the best nearshore location

The first step is to do your research and identify which countries would be a good fit for your business. When choosing a country, you should consider things like time zones, language barriers, and cultural differences. What are the best locations then? It depends on your business’ needs. But some of the most popular nearshore software development locations for US / EU companies include Central Europe, Eastern Europe, Mexico, Brazil. For companies in Asia we have: Philippines, Malaysia, Turkey and India.

2) Set up a communication plan

Communication is key when working with a nearshore software development team. To ensure smooth communication, you should set up a communication plan with your nearshore software development company. This communication plan should include things like regular check-ins, video calls, and email updates.

3) Be patient

Building a nearshore software development team takes time. So, it’s important to be patient and give your team time to adjust to the new workflow.

4) Find a reputable local nearshore software development company (partner)

Once you’ve chosen a country, the next step is to find a reputable nearshore software development company. There are a few things to look for when choosing a company, such as experience, portfolio, and reviews.

5) Hire the right people

Once you’ve found a software development partner, it’s time to start hiring software developers. When hiring, it’s important to choose developers with the right skills and experience. You should also consider things like language abilities and cultural fit.

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/.

10 tips for building and managing a successful nearshore software development team for Project Managers.

A successful nearshore software team can operate fast and effectively to build a product that delivers real value for the customer. It is more difficult to hire and manage it than a typical product team on site. To be successful, your company must have a solid plan in place. We have already covered the general tips for managing modern software teams in another article. Here are some additional tips for the nearshore team Project Manager:

1) Create a clear, concise, and achievable vision for your product.

2) Provide training and ongoing support (as you never be able to get 100% qualifications you need)

3) Set up an efficient schedule with the team. (suitable for you and for them!)

4) Develop the right culture to attract the best talents (conditions, friendly atmosphere, values)

5) Facilitate an Agile approach to move faster with the project and have more control in case of problems.

6) Give autonomy to your team members over their work.

7) Boost communication tools such as Slack and Trello for collaboration and communication.

8) Try to inspire the team with your product and company vision.

9) Celebrate short-term successes and key milestones during the project.

10) Build the bond with team members as you’d do in managing an on-site team.

The importance of the CEE region for US / EU companies.

CEE countries are among the most popular nearshore software development locations for US / EU companies. The region has a large pool of software developers with experience in the latest technologies. And, thanks to its geographical location, the time zone difference is not a big issue.

There are several reasons why the CEE region is a good choice for nearshore software development: – A large number of software developers with experience in the latest technologies – Affordable rates combined with world-class skills – Excellent communication skills – Time zone that is convenient for US / EU companies – Cultural similarities that make it easy to work together

If you’re looking for a nearshore software development partner, the CEE region is a great choice. There are many reputable software development companies in the region that can help you build a successful software development team.

The role of nearshore development companies (partners).

Creating a nearshore software development team requires time and effort. You can do it alone like many other companies. However, if you prefer to save some time and limit some risks you might want to consider cooperation with a local nearshore development vendor.

The nearshore development partner is a local IT company focused on supporting other businesses in building teams or setting up local offices. A good partner will:

– Help you with the initial planning and setting up of your nearshore software development team

– Provide you with access to a large pool of software developers

– Help you with the recruitment process

– Manage the team on your behalf (spacially on the beginning)

– Provide you with ongoing support and advice eg. salaries, benefits, office location, tools, translations.

The Build-Operate-Transfer model.

Many companies prefer to take ownership of software development teams from nearshore partners after the buildup phase. That is why they sign a special clause called the “Build-Operate-Transfer model”. Under this option, the local software development company (partner) sets up and operates the nearshore development office only for an agreed period of time (usually 1-3 years), after which it transfers ownership of the software team to the client.

This BOT model has a lot of other advantages you can read in this article.

Building a software development team with a nearshore software development company (partner).

The first step in setting up a software team or NDO with a nearshore software development company is to identify a suitable partner. There are many companies offering recruitment and outsourcing services in Poland, so it is important to find one that meets your specific needs and requirements (specialized only in nearshore software outsourcing).

When looking for a nearshore development company, it is important to find one that has the following qualities: – Specialized only in nearshore software outsourcing – Proven track record of delivering high-quality projects on time and within budget – Good communication and problem-solving skills – Team of experienced IT Project Managers and Recruitment Managers (responsible for hiring the best nearshore software developers)

The next step is to agree on the terms and conditions of the partnership. This includes the scope of work, delivery timeframe, pricing, and payment terms. It is also important to have a clear understanding of the company’s quality assurance and testing processes. If you thinking about a permanent NDO, you should definitely consider the “Build Operate Transfer model”, which will allow you to take ownership of the complete nearshore development team after several months. (read more: build operate transfer)

Once the partnership has been agreed upon, the next step is to set up the operational infrastructure required for the project. This includes establishing communication channels, managing project files, and organizing team meetings.

The final step is to launch the project and start working with the new team. It is important to provide clear instructions and guidelines to the nearshore outsourcing partner and newly created team, as well as regular feedback and updates on the project status.

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.