Nearshoring in Europe
In recent years, more and more companies are engaging in outsourcing partnerships in nearshoring, hiring vendors from countries with lower wages, which are relatively close to the distance and time zone. They prefer nearshoring over offshoring mainly because of the advantages associated with the cultural, geographic, time and linguistic dimensions that this entails.
Companies that are interested in long-term outsourcing seek to meet the growing needs of software development by allowing the following three alternative models to be considered:
- Project-based operations
- Dedicated centers
- Captive operations.
Some companies who consider that typical project-based subcontracting are not suited to their needs since they may decide to establish captive facilities in attractive nearshore locations (ie, Eastern European countries) and perform work there as part of their own operations. However, this model has tangible disadvantages in terms of risk, investment, operational efficiency and organizational issues.
Therefore, it can be applied mainly by big corporations and multinational corporations that are ready to invest heavily, take calculated risks and allocate the necessary management resources. In this sense, the commitment of dedicated nearshore development center (DDC) seems to be a viable alternative for companies with the long-term expected need for software outsourcing.
Nearshore outsourcing Solutions
Now the market for custom software development continues its steady growth. Hundreds of large and medium-sized companies around the world are involved in it, creating a high level of competition. In order to reduce lots of expenses, a smart business developer may consider the opportunity to pass your project (or your share) to offshore taxpayers located in regions with lower prices. However, that is not so simple.
When outsourcing a project to a location abroad, it is likely to reduce the cost of the project. But it will be really effective only if the level of quality is kept to high standards. Do you want to make sure that all your ideas and product concepts will be implemented correctly? Then you will have to find an excellent collaborator to do the work to the measure of your requirements.
Near shore technology Based in Spain
In these times it is not a surprise for anyone from Spain, it has grown in terms of this subject being able to define a service model able to respond quickly and efficiently to the demanding requirements that exist in the development of European market software And the world.
The capabilities of the Spanish technological industry have grown by leaps and bounds, together with its commitment to innovation and quality, as well as its rapid international expansion, which has led to the emergence of new global models of outsourcing and maintenance of applications in the country.
Pioneering projects in industries such as air traffic control, cybersecurity, telecommunications and more, have been widely developed in Spain. Its natural and extensive familiarity with the Latin American market is also noted with great pride.
Spain is the most popular location for near-sourcing among companies that do business in Europe
The balance between talent, quality and costs has allowed Spain to emerge as a highly attractive country for global companies looking to establish specialized centers. Proof of this are the more than 180 software factories and outsourcing process centers that are currently operating throughout Spain, with Spain being in the fourth place worldwide in the number of CMMI certifications, unlike what happens With other companies out of the country whose statistics show that two out of three software factories have working relationships with offshore centers, mainly in Latin America and Asia-Pacific.
Price is no longer the main factor in selecting a service delivery model. Instead, there are many of the many aspects to consider, along with productivity, cultural affinity and market expertise.
Spain has also demonstrated the key role that software companies have played in this trend, seeking to be a leader in technology by combining enterprise software production capabilities with a network of 24 factories (of which 13 are Distributed across Spain and other European countries) the rapid international growth of the management model through the use of cloud infrastructures is being driven by strategic alliances with world-leading partners such as Microsoft and BMC, multinational consultants already positioned in technology And allowing Spain to be a key emerging motor as a nearshore destination for Europe.