The Steady Rise of Nearshore Software Development

February 01, 2022

As previously mentioned in one of our recent articles, the U.S. is undergoing one of the largest worker resignation rates in at least three decades.  With additional elements, like the pandemic and Biden’s administration announcing that it will no longer allow government-supported technology developed in the U.S. to be sent to manufacturers overseas, it is no surprise that there has been a steady increase in demand for nearshore software development.

The global pandemic caused a supply chain shortage that has severely affected many industries, including manufacturing services and overseas technology development projects.

Overseas companies didn’t have the necessary resources or infrastructure to support the pandemic guidelines, like the work-from-home set up, and consequently, their tech services were affected. Companies that were already partnering with onshore or U.S.-based nearshoring were much better equipped and ready to continue business as usual. 

Nearshoring: An Attractive Solution

Besides being able to continue a stable supply chain, the companies that were partnered with onshore or nearshore providers also benefited from the advantages of these partnerships, such as: 

  • Protecting intellectual property. These days, cyberattacks are coming across agencies, organizations, and businesses alike. Regardless of the reason, they are targeting the systems that run our healthcare, businesses, government, and others. 
  • Supporting U.S. businesses. Businesses and other organizations should consider leveraging the U.S. for all phases of the technology life cycle. This would better protect our leadership position in technological expertise- a critical component to the U.S.’s competitive advantage. Outsourcing to U.S.-based service providers on the mainland or in nearshore locations would help the U.S. maintain its competitive advantage on the global technology stage. 
  • Mitigating risk. The pandemic exposed some vulnerabilities of the supply chain. By keeping the development and manufacturing services closer, it enables federal agencies or other organizations better control over possible future disruptions or additional risks.
  • Ensuring diversity. U.S. companies should ensure that they are working with a diverse group. By working with a team compiled from people with different backgrounds and culture, we avoid biases in data and consequently, a biased AI. Data has the power to impact people’s lives. A diverse workforce guarantees better AI solutions.

Nowadays, companies everywhere are re-imagining the definition of teams– what it can look like to them.  They are searching for true partnerships with their outsourcing providers. The great resignation and the need for supplemental IT staff have played a key role in the steady rise of nearshore software development, but the edge it provides could be what your IT projects are missing.

Nearshore software development has always been an appealing prospect because of the advantages it offers, like lower prices, but nowadays it is an integral part of developing the smart ecosystem companies everywhere should be looking to adopt and expand upon.

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