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In our previous posts, we discussed the advantages of Distance, and Language. If you haven’t checked our infographic, do so now by clicking here. Today, we discuss our third benefit: Pricing Advantages of Nearshore Outsourcing to Puerto Rico. Expect to read our Quality and IP Protection posts in the following weeks.

Outsourcing nearshore custom software development has been a hot topic at procurement departments for the last two decades. Heightened by the increase in broadband connectivity and advancement in collaborative technologies, the increase in outsourcing over internal development has been greater in the last decade. According to the IT research and advisory company Gartner, global spending for IT outsourcing was projected to reach $287 billion in 2013. [1]  This only seems to be a logical consequence, as companies launching new products prefer to transfer execution and responsibilities to third-parties with greater expertise in certain areas. Technology is one of these areas where companies have identified that by partnering with experts, they can unlock tremendous value. The real value comes from speed, accurate execution, and, of course, cash savings. In this blog post, we are going to discuss the advantages of nearshore outsourcing in terms of pricing.

According to MIT Sloan Management Review, from 1999-2003 for every dollar spent on IT-outsourcing, companies saved 26% on average on other non-IT areas.[2] Considering technology has leaped tremendously in the past decade, we can only assume savings are bigger with more specialized tools, new software technology, higher broadband access and global democratization of technology. Furthermore, when properly outsourced to companies with domain expertise, these partners can truly bring front-office value with new features and automation of client serving activities. So, we ask: what factors create these savings?

Experience and years in business are critical factors to consider before contracting a technology outsourcing partner. But experience isn’t the only important factor, because when you hire a technology outsourcing company you are hiring a team. The team approach that some companies offer is one important advantage, and you may ask yourself why? Well, simply because when you hire a junior developer within an outsourcing firm, you have access to a senior technical talent that can assists junior software developers in solving problems quicker. Having access to a senior technology professional that is guiding, mentoring and following throughout the process is great, because it saves time and money. Companies interested in outsourcing can tap a complete team’s knowledge, without the costs. A complete team not only will provide assistance in challenging times, but will keep the project moving in the right direction without delays.

Another important factor on why nearshore custom software development costs less than internal development is that outsourcing vendors normally have advanced methodologies in place to execute the project in a more efficient fashion, with proper version controls. Companies would have to invest in senior technology team setups, in order to obtain these advantages. Here at Wovenware we have a diverse set of professionals with very different backgrounds, all with a mission to assist companies in their IT Strategy needs, especially those who are going through a process of change and expansion.

Our rates have quickly become a very interesting attribute to US, Canadian and European companies that have chosen Wovenware near shore software development services over other service providers. In several cases, Wovenware’s project cost 40% less than other service providers, yet our project delivered more value than competing firms. Some of the value differences mentioned by our clients were: more detailed product specifications, clarity and understanding throughout the design phase, communication levels with all stakeholders involved, and excellent technology transfer to internal resources.

Any company can take advantage of technology outsourcing partnerships. Most of your direct competitors are doing so already. Make sure you look at your company’s strategy and identify which areas of your business can be transferred to expert outsourcing partners. Experts that will help you lower operating expenses and focus on your core business. As research has shown, every $1.00 you spend on outsourcing can provide you with an average $0.26 to invest in sales & marketing, research and development, or your team’s compensation. Imagine you have a $100,000 budget for a specific IT project. By outsourcing your software development project to Wovenware in Puerto Rico you could not only achieve nominal savings of 30% in comparison to other outsourcing firms, but efficiencies created in other divisions translate to additional savings of 26%. Any company can benefit from lowering costs and increasing IT development efficiencies, liberating 50% or more of your budget.

Software Development Price Advantage of Wovenware

Our clients include international software companies that have completely outsourced their software development to Wovenware. Yes, you read that correctly, global software companies that have outsourced their software development to another software development and consulting firm. If those companies trust Wovenware to develop their products, what is holding your company from reaping similar benefits? Contact Wovenware today to see how you could save in your software development needs, but more importantly capitalize competitive advantages in comparison to your peers.

Fill this quick form to get in contact with Wovenware and talk about Nearshore Outsourcing.


[1] The Real Savings From IT Outsourcing. MIT Sloan Review. December 19, 2013 Kunsoo Han and Sunil Mithas Retrieved April 21, 2014 from

[2] Id. The Real Savings from IT Outsourcing.

In-House vs. Nearshore Software Development Cost

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