Advantages Of Nearshore Agile Development: Why Companies Are Choosing This Approach

Agile methods are a set of project management practices. These practices arise from a flexible approach that provides the structure and principles of management. But before starting to transform project management in an organization, it is necessary to fully understand the advantages and disadvantages of Agile methods.

Nearshore consists of outsourcing the company's activities to service providers located in geographically close countries and in the same time zone. Nearshore agile software development is especially useful for companies that want to outsource functions such as software development, technical support, or customer service while maintaining geographical proximity, which facilitates communication and collaboration.

What is the flexible method? 

The flexible project management method consists of a set of practices resulting from a flexible approach. This is a working structure, a process that aims to help companies develop valuable products.

Unlike traditional management, called "Waterfall", Agile management is result-oriented and its goal is to respond more quickly to the changing requirements of the universal end user.

This approach is characterized by a set of rules that must be followed, which are described in their own jargon, in the Agile Manifesto.

“Project Manager's Kit 0923” - this Agile manifesto was signed and published by 17 designers and IT gurus who have followed the Agile culture for years.

According to the latest Agile status report  :

"The two most important reasons for implementing Agile are the speed and flexibility needed for a work environment that remains unpredictable and unstable. Added to these two reasons is the constant need to focus on consistency between teams to optimize the software delivery process."

What are the values of a flexible approach?

The Agile manifesto defines the method to be followed using 4 basic values :

• People and interactions are more than processes and tools;
• Operational software is more than comprehensive documentation;
• Cooperation with clients is more than just contract negotiations;
• Adapting to change is more than following a plan.

Key flexible methods

Working flexibly means immersing yourself in a flexible culture and fully understanding how agile methods work.

Let's look at some of the most commonly used methods.

• The Scrum Method

Scrum is a framework in which people can solve complex adaptive problems by productively and creatively creating products of the highest possible value.

Using Scrum, the development team easily divides its product into tasks. She becomes more flexible and learns to react quickly and respond to unforeseen events. Scrum uses artifacts, ceremonies, and rituals to achieve the desired results. However, some teams may view these ceremonies as time-consuming.

• Kanban Method

Like Scrum, Kanban encourages splitting work into small tasks.

But instead of scheduling work as part of an iteration or sprint, team members extract the highest priority task from a backup ready for development.

• The SAFe method

The SAFe Framework (Scaled Agile Framework) allows you to implement a flexible method at the scale of the organization. It is mainly intended for development teams. This method is based on principles and knowledge that promote consistency, collaboration, and task implementation in a large number of flexible teams.

What are the main advantages of this service?

Different outsourcing models: 

Outsourcing of projects, including coastal and Nearshore ones, is a very common practice, especially in the field of technology. Today, companies must clearly distinguish between them and know their characteristics in order to choose the option that suits them best.

Outsourcing of projects:

Outsourcing of the project consists of transferring all or part of the company's activities to an external service provider. The purpose of this practice is to improve the efficiency and quality of their services, to allow companies to focus on their core business, or to fill the shortage of a certain specialized workforce in the country of origin.

Outsourcing of projects can relate to various areas such as marketing, human resources, manufacturing, technology sector, accounting, etc. This can be done locally or abroad, depending on the needs of the company.

Offshore:

Offshore means moving certain activities or services of a company to a foreign country located in a region offering lower labor costs. Many businesses turn to offshore outsourcing software development companies to efficiently manage these transitions.This practice represents a real opportunity for companies to increase their competitiveness, expand the market, and mobilize human skills.

Offshore services may include product manufacturing, software development, call center management, accounting, project management, research and development, and other professional services.

However, geographical distance and language barriers can complicate collaboration between teams.

Nearshore:

The Nearshore service consists of outsourcing the company's activities to a service provider located in a neighboring or geographically close country.

This approach allows businesses to reduce costs while gaining easy access to skills and resources for technology, support services, and product development. Providers of this service often offer additional benefits such as the same working hours, reliable communication infrastructure, and a similar corporate culture, which facilitates collaboration and reduces distance-related problems.  

This outsourcing service is becoming increasingly popular, especially among companies willing to outsource expensive activities such as software development and data analysis.

The main advantages of this approach are

Favorable time zones

The Nearshore approach involves moving activities to a neighboring or nearby country that is in a similar time zone, for smoother interaction. This significantly increases the efficiency and productivity of the business, while reducing travel and logistics costs. Due to similar time zones, teams can work in real-time and communicate more easily during normal business hours. 

Such proximity in time is beneficial for projects in a flexible mode, where regular and frequent information exchange is necessary to track the progress of the project and adjust priorities.

It is important to note that the choice of a country for this type of service should not be based solely on time zone or cost, but should also take into account the quality and experience of the teams, as well as political and economic stability.

Cultural intimacy and harmonious communication 

One of the advantages of this model is the ability to work with teams with cultural and linguistic affinity, which facilitates communication and promotes better collaboration.

The success of an outsourcing project will depend on the quality of communication and collaboration between the participating teams. 

By choosing a company offering outsourcing services in geographically close countries, customers can benefit from an excellent experience, while reducing production costs and shortening work lead times.

Significant cost control  

This service can indeed provide significant cost control for companies that choose to use it. By transferring services to nearby countries, companies can find specific specialists at a more affordable price adapted to the financial needs of the company. Indeed, countries accustomed to such practices often have training and advanced training centers similar to those in Western countries, but at lower costs.

What you need to be prepared for

The main difficulty on the way to flexible mode is the difficulty of installing it. It's not enough to just organize a team with the right roles, the right tools, and the right rituals.

Even if a company follows all the recommendations literally, it will still face organizational problems, as the company will have to completely change its entire culture.

Misunderstanding or poor understanding of flexibility

Most people don't understand what it means to be Agile. Many companies want to be flexible but don't spend time, money, or effort actually informing management or employees.

Too often, the Agile method is accepted as a solution, but with any cultural, organizational, or procedural changes, the lack of investment in understanding these changes and their consequences inevitably leads to failure.

Minimization of documentation in agile development

Since development starts quickly, product requirements are clarified just in time for the start of the process. Flexible product documentation is usually less complex and detailed.

When new members join the team, they don't know the details of certain functions and how they should work. This can cause difficulties and take longer to adapt.

The difficulty of implementing a flexible culture

Not all corporate cultures are "ready" for such radical changes as required by Agile culture.

Trust, flexibility, and uncertainty are variables that may be incompatible with the company's values. Yet it is precisely these elements that make agile methodologies successful.

Lack of predictability of the Agile approach

The Agile culture is based on the idea that teams won't know what their end result will look like. This makes it difficult to predict the cost, time, and resources needed to launch a project. This problem becomes more acute as projects become larger and more complex.

Conclusion

Take advantage of the services of qualified specialists at, as a rule, lower costs. By outsourcing certain tasks, companies can expand their teams and expertise, reduce costs, and increase productivity.

To choose a company for this outsourcing, it is important to evaluate several options in order to find the best company that meets all needs, such as the company's experience in these services, availability of resources, quality of services, communication to maintain effective communication throughout the project and a corporate culture that should be compatible with yours. This will help ensure effective cooperation and successful teamwork.