How to Choose the Best Nearshore Company
Globalized business no longer means selling overseas with suppliers from around the world – it also refers to our workforce. In light of recent tariffs, it may be a domestically-focused business in most aspects, yet the programmers and marketing team can benefit from being offshore.
For those looking to outsource work, there may be concerns about a fragmented workforce with different time zones and languages. This is why nearshoring has become a pragmatic middle ground.
Why nearshoring?
Cost savings may well initiate the conversation for using overseas workers; the true value can be found through the “near” element. Time zone and cultural alignment are super important when having a functioning team; there needs to be a closeness in terms of how they work, when they work, and the language they use. Although there may be exceptions, a general rule of thumb is that the closer a pair of countries is to one another, the more they have in common.
German and Polish working culture are not all that different, much like how neighboring Thailand and Myanmar are both Buddhist. It’s no surprise, then, that Applicacorp.com, which facilitates workers from all over Argentina, Uruguay, and Chile, is popular in the US. Those nations wake up when Americans wake up, learn American English, and have similar values in the workplace. On the other hand, Brainhub is the European go-to software nearshoring firm, while BankiFi is a fintech specialist.
Factor 1: Verifiable technical expertise and domain knowledge
So, how do you go about choosing a company? Firstly, don’t rely solely on sales presentations. The provider’s technical expertise is still going to be the most important thing, so ensure they have demonstrated proof of experience within the exact frameworks and platforms your project requires. Not only technology, but regulatory experience too.
Factor 2: Communication protocols
Effective communication is one of the reasons you’re not offshoring, but nearshoring. So, don’t get complacent here, and ensure you assess the English proficiency (particularly for the project managers and team leads). Fluency must be both in an informal and technical context, but also in understandable accents. Being unable to have fluid conversations can hinder a project. Inquire about their standard communication tools, such as Slack or Microsoft Teams, and then assess how their information flows and transparency levels compare.
Factor 3: Cultural compatibility
Understanding a nearshore company’s internal culture is going to be important. Explore their typical work hours and approach to meeting deadlines. But you have to be quite observant in subtly picking up their style of teamwork and how they solve problems. Perhaps more initially obvious will be whether it’s a hierarchical or flat structure, and whether it seems like a positive work environment to be around. What’s clear is that in the US, there is a very specific, positive working culture that not everywhere (e.g. Central and Eastern Europe) aligns with.
Factor 4: Security and compliance
Next up is risk mitigation, ensuring there are mature processes that drive reliable delivery. You want to look at their project methodologies (Agile, Scrum or Kanban, etc.) and how they provide project visibility to track progress. Something you can ask them about is their Quality Assurance (QA) approach, as well as looking for relevant security certifications like ISO 27001 or SOC 2, and inquire about GDPR/CCPA compliance practices.
Factor 5: Pricing models and transparency
Of course, you’re likely looking overseas for better value. We’ve covered the quality part, so now it’s time to look at the pricing. Different structures will be available, and common models include Time & Materials, Fixed Price, Dedicated Team, among others. Transparency is essential across all models, with all potential costs clearly outlined, including any additional expenses for overtime and specialized tools.
Factor 6: Scalability and talent retention
The general advantage of using both nearshoring and offshoring is that business needs change, projects change in scale, and these firms can adapt to these without having to go through the expensive hiring process. Even still, you want to check the partner’s ability to adapt, and how quickly and efficiently they can ramp up a team based on changing project requirements. Ask about their process for vetting and onboarding new talent when it’s needed.
Factor 7: Due diligence
Thorough due diligence is simply non-negotiable. It’s the last step because it’s a final verification that this is a trustworthy company that isn’t making empty promises. You could ask to speak with current or former clients, but you can also check their LinkedIn interactions and testimonials. For long-term engagements, you could even consider checking out their financial health to ensure they’re stable.
Making an informed strategic decision
Deciding to use a nearshore company can be quite straightforward, but the company you settle on shouldn’t be an easy decision. Remember to check not just their credentials and expertise, but the context of it, to see if it’s relevant to your stack, industry, and regulatory obstacles.