Nearshoring - Get unmatched talents from outsourcing

Nearshoring - Get unmatched talents from outsourcing

In the past few years, it has become less important for organizations to have all employees under one roof. They began to use the practice of outsourcing, hiring teams with the right skills from a third party for major IT projects.

  • When it comes to software development, outsourcing options include offshore, onshore, and nearshore outsourcing. All of these differ and choosing the one that fits a given project best can be a complicated task.
  • 1. Why nearshoring became this big and inevitable

  • By now, more and more companies are realizing that it is professionally impossible or sometimes irrationally expensive to control all processes in-house. So, the outsourcing of IT tasks has become the new standard. If the software development arrangement involves outsourcing the project to a geographically close contractor of another country, it is called nearshore software development
    This opportunity allows businesses and corporations to focus their energy and resources on their core competencies eliminating the need to invest in other complex fields of expertise. Ensuring the continuity of business applications in the life of a company is one of the most important tasks, since a failure affecting continuity can even mean an immediate loss. Meanwhile, companies outsourcing their IT operations can free up resources and focus entirely on their profitable core activities.
  • By reasonably outsourcing IT tasks, companies can gain a partner for a well-planned,  fixed cost, where each technology and even manufacturer has its own specialist. And outsourced IT provides multinational companies a safety net on which they can rely anytime, even in the event of intermittent congestion or lack of expertise. So, the largest companies do not have to adjust their internal IT capacities to periodic peak loads. In-house software development consumes significant resources in most cases. An expert IT team needs to be organized, and their work needs to be paid for even when there is no task to be completed in a given project.
    A year-round salary can be a serious expense. Outsourcing software development, on the other hand, guarantees long-term financial planning. There is no need to maintain a permanent, in-house development team. There are no additional costs. And the whole process can be significantly simplified and shortened. A key element of successful outsourcing is to pinpoint the needs of the company. Everything that needs to be outsourced should be listed in detail along with the preferred conditions.
    • 2. Benefits with talent in focus

    • When nearshoring, a company has a qualified team of experts – all the tasks are performed by professionals who are deeply experienced and have the latest technical knowledge in their field. It is a serious challenge for companies to keep up the pace with technological development and the constant change of rules and regulations. These problems can be solved by outsourcing partners who focus on a specific task, and facilitate the most optimal processes. Outsourcing providers can attract talented, multi-sector experienced employees.
  • It is necessary to have a great pool of professionals to create real cooperation between the knowledge triangle (universities, research institutes, businesses). This enables the support of areas recognized exclusively in international competition in higher education and research, where all domestic actors can negotiate at an international level in forums.
  • Choosing a job in an expanded geographic area means having more talented people available at the company. This reduces the need for further training and management of a skilled workforce, who usually have additional skills and talents that are already available in-house. In a developing country, the demand of workforce of foreign firms also increases the chances of the best being taken out of the labor pool. The software development process involves the difficult tasks of conducting research, implementing development, producing, modifying, reusing, redesigning, and maintaining software.
    • 3. The CEE area as a talent pool

    Outsourcing provides an excellent opportunity for companies to access a global talent pool and reduce software development costs. Central and Eastern Europe are becoming increasingly prominent when it comes to outsourcing. In Eastern European countries, IT education is usually being actively promoted and the government provides easier legal procedures and tax benefits for the industry. So, developers are more interested in outsourcing, moreover, the pay rate in this area is mostly high and taxes tend to be favourable
    Eastern European programmers provide exceptional quality IT services due to their high level of education, comfortable time zone differences, and only a slight cultural difference. All this, in addition to the increased value of money, makes Eastern Europe a perfect candidate for outsourcing software development.
  • Source: daxx.com
  • Central Eastern European development teams can offer massive experience in different programming languages, and their software engineers are skilled at both mobile app and web-based application development. IT outsourcing remains one of the most dynamically developing sectors of the Eastern European economy. As this sector has been less affected by the epidemic, and a lot of areas and procedures can be executed remotely as well. 
    • 4. The BlackBelt experience

    Many leading tech companies open software development centers in Eastern European countries such as Ukraine, Poland, or Hungary. Hungary is an often recommended outsourcing destination and not without a reason. Hungary has around 84,500 IT professionals, 53 universities, and colleges with an overall 287,018 students, over 20,000 of which study Information Technologies. The IT sector produces more than 9% of the annual GDP of the country. Furthermore, the physical proximity of Hungarian companies (and excellent transportation possibilities by plane, train, or even bus) makes it desirable for nearshoring. Especially among German-speaking countries. But in the tech sector, a fluent working proficiency level of English is not a challenge but a must.
  • In Hungary, more and more companies that offer high-quality software development are appearing to compete with any of their global partners. One of them is our company, BlackBelt Technology – and our name is not just a coincidence. Founded in 2013, our vision is to connect the country’s best IT professionals with the most interesting IT projects on the market.
    Our founders and employees are well-known and recognized experts in the Hungarian IT market, committed to quality IT services. In addition to providing classic software development and development teams, we also offer custom IT solution development and product development in the form of a service. Custom software can be developed using the technology of the customer's choice or our own JUDO fast application development platform.
  • In 2019, we were shortlisted at the Central European Startup Awards in the Best Software Development Partner category.

    Our mission (from BlackBelt’s LinkedIn)

    “Success, growth, and becoming better than competitors is increasingly the result of the ability to adopt what technology can offer. In a world where it is hard to make future-proof decisions about technology, BlackBelt relies on its ever-growing team of professionals who create the best-suited and most efficient solutions for clients. We offer flexibility and help our colleagues adapt to the ever-changing development technology landscape – whether you wish to try yourself in new areas or build on your existing knowledge in the best possible way.”
Zoltán Kővári
Written by

Zoltán Kővári

Business Development Manager

2021-07-28

Nearshoring - Get unmatched talents from outsourcing

6 min

nearshoring

outsourcing

software development

Contact us

+36 1 611 0462

info@blackbelt.hu