What you should know about Nearshore SaaS Development

Many companies turn to offshore SaaS development because of its relative ease and cost savings. However, the experience of doing so may be less than desirable. Here’s a look at what you should know about Nearshore SaaS development and why you should consider developing in-house instead.

How does nearshore software development work?

Nearshore development is the act of outsourcing software development to a company in another country, typically located near an area where your organization operates. It’s often used for low-cost or short-term projects that require minimal customization and time to implement. Nearshore software is usually done through an agency model, which entails a third-party vendor contracting with your company to develop the solution. The agency may take care of everything from project management and source code review to QA testing and deployment. Because it’s an outsourced process, the agency will typically charge a fixed price for the project, often at a lower rate than what you would pay an in-house team. The advantage of using an agency is that it reduces risk and allows your organization to focus on other aspects of business while the vendor handles all the technical details.

Why do companies choose to outsource their software development?

Because of the risk involved with in-house development, many companies choose to outsource their software development. The main reason is that it’s a cost-effective way to save money while still retaining full control over your product.

However, there are several downsides associated with outsourcing: It’s often difficult to find the right person with the necessary skills to do your project. You may need someone who can perform some or all of these functions:  

• Programmer, programmer analyst, developer, and system administrator.

• Senior technical leader/project manager.

• Software tester.

• Project manager.

• Project sponsor.

Outsourcing also comes with the risk of being overcharged for your project, or not getting what you want in terms of functionality and quality. You may have to do a lot of extra work because the vendor has never done this type of project before. It’s important to work with a vendor that has experience doing this type of project.

What are the advantages and disadvantages of Nearshore Software development?

There are many advantages and disadvantages to using a Nearshore software development partner. Here are some of the main ones:

Advantages:

• Cost effective.

• Easy to manage, implement and maintain.

• Quick time-to-market.

• Experienced.

• Technology is mature.

Disadvantages:       

• Not the best choice for your business if you are looking for an in-house team to be your primary developer.

• You may have to deal with longer delivery times because of vendor-imposed restrictions on project scope and timeframes.

• Vendor may take longer to deliver than you expect, causing uncertainty in the organization.

Conclusion

The SaaS industry is a rapidly growing one. This blog post has highlighted some of the issues faced by companies in this space, and also discussed some of the advantages of working with an offshore company. To get started on your own Nearshore SaaS development project, please fill out our contact form below to request more information about what we can do for you. Thank you for reading!