3 Business Lessons We Learned with Nearshore Development
Technology, it can be said, is the great leveler. It has made resources from disparate corners of the globe accessible to any enterprise with a high-speed internet connection -- giving rise to the boast that such conveniences, automatically, create efficiencies that can significantly reduce the costs of IT development for American businesses.
If you have been an avid follower of iTexico’s blogs, you already understand that there are key differences between the use of offshore, onshore, and nearshore resources to achieve development objectives; further, the approach that may, on the surface, seem beneficial, may end up costing you more, in terms of lost productivity, scope creep, and actual dollars and cents.
At iTexico, we have done our research, and are a keen believer in the use of nearshore development -- a perfected blend, we feel, which delivers the best in technology resources, cost benefits, cultural and linguistical considerations, time zone efficiencies and collaboration.
Of course, it’s one thing for us to assert OUR belief that nearshore development is the best approach for our clients -- it’s quite another to view it through the lens of an actual client situation in which the benefits of nearshore combined to create a multi-year, multi-million-dollar opportunity that simply would not have been possible otherwise.
The story starts when we were approached by a Software as a Service enterprise that had traditionally developed solutions on the iOS and Android platforms, but had become aware of an opportunity they could not pass up: an exciting new account with a company that would be a perfect fit for its solution -- but needed a SaaS product to function exclusively on Microsoft’s Surface tablet devices.
This meant the SaaS company couldn’t simply talk about their solutions in proposing to earn the new business -- they needed a full-fledged demonstration app, running in Windows 10, in order to close the deal. Unfortunately, the company’s two in-house app developers were already overwhelmed, and they needed a solution that would deliver needed resources on a timeline, with skills that would integrate quickly with the SaaS company’s existing culture, and without busting the company’s budget.
iTexico -- and its nearshore development approach -- represented the best way for the SaaS company to slay the beast that lay before it. Specifically, there were three business lessons about nearshore development that were on display during this very frenetic, time-sensitive engagement:
- Time: iTexico added sufficient engineering resources to expand the capacity necessary for the SaaS company to achieve the objective. By leveraging a relationship with a nearshore company like iTexico, the company was able to utilize the resources it needed, at the time it needed, and then was able to scale back as objectives were completed. And, since iTexico is an Agile development shop, its team members were able to efficiently integrate with the two existing engineers at the SaaS company -- meaning development objectives were quickly approved, and a proof-of-concept was quickly green-lit after just one sprint.
2. Talent: As a company focused on iOS and Android development, it would have been difficult for the SaaS company to quickly find freelancers or other resources who were conversant in Windows. By engaging iTexico, the company leveraged a company with best-in-class talent in a variety of platforms. This cross-platform experience led to an early realization -- that several key back-end components in the iOS and Android apps could be repurposed, decreasing the amount of development time.
3.Budget: iTexico’s nearshore approach -- which leverages a secondary delivery center in Guadalara, Mexico -- delivers substantial savings over other outsourced IT development solutions, often up to 50 percent per hour, per headcount. In the case of the SaaS client, this could translate to a savings of about $2 million over the course of three years. Plus, the company will enjoy the enhanced productivity that comes from having an experienced work force at their fingertips, which can also be easily scaled up and down, depending upon future engineering needs.
Do you need to know how to leverage technology to address business problems within your organization with nearshore development? If we can be of service, give us a call.