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4 Problems Solved by Implementing Nearshore Development

4 Problems Solved by Implementing Nearshore Development

Published on: 02 Apr 2021 5 min read

Even if you already have an in-house IT team, the benefits of implementing an outsourced IT service provider are worth your attention. Having a dedicated nearshore development center (NDC) of experienced IT specialists that complement your day-to-day IT operations, help you solve critical challenges, and let you focus on growing your business is just the starting point.

Read on to learn about the four main issues a nearshore development center helps tackle, and some examples of successful businesses that have grown by choosing Scalefocus as their strategic nearshore partner.

1. Limited IT Resources & Recruiting Difficulties

Dynamic markets, remote access and tighter security, have contributed to the rise of managed IT services in the past year with spending reaching roughly $733.9 billion in 2020 (Statista). About a third of that budget is going to cloud services. Many companies, however, are still struggling with a need for extra development power, lacking the IT resources necessary to implement their projects.

For businesses in such a scenario, partnering with an NDC provides the necessary strategic planning and monitoring that allow to properly allocate resources quickly, as well as identify and correct and problems that may arise in the future. A valuable partnership can opens doors for budgets and projects that may have previously never been considered. Check out how Scalefocus approaches implementing a Technology Strategy here.

An organization’s digital transformation is put on the back burner when faced with a lack of skilled employees. Gartner reports that in the last five years, the growth in jobs requiring digital skills posted by non-tech companies in top 12 countries by GDP has risen significantly, especially around AI, RPA and data science.

2. Quality Assurance in Application Development

High-quality application development ensures ease of use throughout the entire consumer journey, quick onboarding, great functionality and scalability. These are all critical factors when launching a product company, and help a business stay ahead of the competition. However, they also require a very high level of application development standard that can be achieved either by recruiting top professionals at a high cost or selecting a services partner with the right experience and technical expertise.

When you choose Scalefocus as your digital nearshore development center, you enter a partnership that has built scalable teams with a high level of experience in multiple technologies. We take a holistic approach when addressing the needs of a business, are not bound to a specific technology. We select and implement the optimal one that will solve a company’s specific problems.

Businesses that are struggling to find the right talent that meets the project requirements, and are losing too much time in recruitment, can take advantage of Bulgaria’s prime location. Bulgaria has one of the largest IT talent pools worldwide, with over 70,000 employed in the ICT sector, with a 45% growth since 2017 (Export.Gov).

3. Time-to-Market

Having a long and strenuous time-to-market can significantly drag you behind, costing you time, money and effort that could be placed towards reaching new milestones and growing the relationship with your end customers. So, what leads to a long time to market? Reasons may include a mix of poor project planning, complex design and architecture, labour-intensive manual processes, or a lack of quality and compliance.
Implementing an NDC allows a company to utilize a pool of resources that helps overcome these hurdles, that in most cases, exceed their internal capacity. The services company is able to create team setups that engage a large group of professionals with all ranges of technical skillsets that can operate in full time, shared, task-based and other modes creating a very efficient and much more cost-effective setup.

By partnering with Scalefocus, your business can enjoy a fast and easy team onboarding and start thanks to our large IT talent pool, fine-tuned recruiting processes, and IT Staff Transformation training program, with a detailed ramp-up strategy aligned with your long-term objectives. We delegate experts accordingly, with an adjustable team composition to match varying project needs, and have dedicated delivery managers that are responsible for the project’s overall success.

4. Budget Limitations

The benefits of predictive and cost-effective resource scaling are powerful. Many businesses, however, don’t have an effective budget strategy in place and rely on simply setting a cap on costs spent, allocating resources poorly, and minimizing the positive outcome that may come from ignored areas.

Due to the current pandemic, Gartner reports that since 2020, 62% of businesses have planned to cut down overall spending, with 18% planning to cut costs in each category. The most limitations are focused on marketing and sales.

The good news is that by employing a nearshore team, businesses are able to cut costs by up to 50%, and at times, receive superior development quality, compared to the one in their home country. At Scalefocus, we believe that scheduling and budgeting are important capabilities that lead to successful project execution, and we continue to offer them, in addition to our project planning services. Check out more info on our approach to project management here.

Let’s Take the Next Step Together

Our expert teams of developers, project managers, business consultants, work synchronously with a wide range of technologies to deliver successful projects for successful businesses. One particular project we are proud of is Deploying a Remote Delivery Center for a Digital Retailer. By fully digitalizing our business partner’s personalized services, they now enjoy a 30x increase in time-to-market, a double decrease in engineering costs, and 6x faster staffing.

We are also big proponents of developing and implementing cloud-based technology and computing. For one of our clinical solutions providers, our engineers effectively replaced all of their monolithic solutions in a single cloud-based platform. We were able to contribute to effective service distribution, 15 000 automated QA tests, and 40% overall cost decrease. Read more about our project, Private Cloud-Based Application Development.

If these success stories have piqued your interest, and you’d like to discuss options to grow your business, reach out to us for a free consultation. Whether you’re just discovering the benefits of implementing an NDC, in the initial phase of project ideation and need some guidance, facing challenges with scheduling and budget, or stuck in the development phase, Scalefocus is here to help.

Let’s join forces and take the next step together in scaling your business to new heights.