There are various types of outsourcing in bespoke software development, and location is one of the most critical factors that affect services, since the distance between a client and a software provider plays a significant part in IT outsourcing. If you are a CTO or an IT executive looking for a software partner to provide experienced teams, choosing nearshore outsourcing may be the best option.
In this article, you will get:
- A nearshore outsourcing definition
- Significant nearshoring advantages
- Nearshore outsourcing rates
- Case studies of Western European companies that use nearshoring
What is nearshore outsourcing?
Nearshoring (nearshore outsourcing) is the perfect sweet spot between onshoring (utilizing a development services company in the same country of operations) and offshoring (outsourcing work to a team located in a different part of the world). Nearshore IT outsourcing provides you with top-level services at more cost-effective rates. Nearshore is becoming increasingly popular among Western European countries, with Central and Eastern Europe being the foremost choice.
Poland is a perfect fit for nearshore outsourcing for the United Kingdom (UK), DACH (Germany, Austria and Switzerland), Benelux (Belgium, the Netherlands, Luxembourg) and Nordic (Norway, Sweden, Denmark, and Finland) markets.
Nearshore outsourcing benefits
By working with a nearshore outsourcing company, you gain many additional advantages. It’s worth taking a look at the most noteworthy of them:
- No time difference – since both countries share the same time zone, the software engineers’ executive team should have no issues coordinating parallel work, setting up meetings and submitting code. Working inhumane hours is no longer a must.
- Bringing teams together is easier – if necessary, traveling from one country to another is no challenge. With flights ranging from 1 to 3 hours, any participating party can easily transit to another city. Taking the morning flight means they can be back home by evening. A face-to-face meeting is easy to organize.
- A more comprehensive range of services – choosing a trusted nearshore software house gives you access to a larger pool of IT talent than an onshore vendor.
- No cultural differences – selecting a country in your vicinity guarantees the same work ethic, often very similar experience and no cultural discrepancies that may affect team cooperation.
- Better budget allocation – when selecting countries like Poland, where daily software engineer rates are lower than in Western Europe, companies can expect a cost reduction that does not compromise the quality of code or hinder workflows.
Nearshore outsourcing to Poland – additional characteristics
Working with Poland’s trustworthy and experienced software development services provider goes beyond cost-efficiency and the abovementioned benefits. Choosing Poland as your nearshore IT partner means no actual language barrier, as the country ranks 16th in the global EF English Proficiency Index. There are other advantages as well.
As a part of the European Union, Poland already complies with all General Data Protection Regulations (GDPR). Setting the highest security standards elevates Polish software houses as reliable partners. Software Mind has the utmost security procedures, as proved by its SOC 2 (Service and Organization Controls 2) classification, an international standard for collecting and sharing information about control procedures and processes in IT organizations.
Experienced software partners are not afraid to take ownership and focus on solving issues, instead of looking for excuses. Continuous service improvement runs at the core of software creation, as an innovative approach to problem solving and agile way of project management are the cornerstones of a successful software development company.
Nearshore outsourcing rates in Poland
What is the average yearly software developers salary in Poland compared to other Western European countries? “Skillsoft’s Global Knowledge 2021 IT Skills and Salary Report” states that an annual average salary of an IT professional in Poland is $52,712. Meanwhile, Switzerland leads European wages with a yearly average of $141,950. What about other countries? IT professionals in Denmark earn an average salary of $122,304, IT professionals in the United Kingdom earn $88,847, while German’s yearly wages are $95,982.
Software developer’s average salary according to Skillsoft’s IT Report:
|COUNTRY||Average pay in USD yearly (Skillsoft’s IT Report)|
There are also additional benefits of teaming up with a trusted external software partner, like a billing model that allows you to just pay for the hours worked and software produced. Moreover, you do not need to worry about additional hiring costs that accompany employee acquisition, onboarding, bonuses and everyday work perks.
The price of software development services in Central and Eastern European software houses is higher than in companies in India or Pakistan. Still, the aforementioned nearshore outsourcing benefits bring far more added value – cutting costs is not always the best solution. The choice between nearshoring and offshoring is essential and may significantly impact your company.
Case studies of applying nearshoring
Real-life case studies are the best evidence of how nearshore outsourcing can influence your tech stack and change business outcomes. With over 23 years of software development experience, Software Mind has supported leading European companies in a nearshore outsourcing model. The following is a list of some of our case studies:
Belgian IoT company that delivers a proprietary platform to manage and optimize machines’ performance requested Software Mind to audit the current platform by analyzing the existing architecture and flaws.
Dutch company banking platform provider needed the Software Mind team to deliver product development and application deployment services, enabling financial institutions to accelerate digital transformation strategies.
Finish fintech company, known for its comprehensive financial management software, was able to extend its development capabilities to support the rapid growth of its business while reducing maintenance costs and speeding up time to market, thanks to Software Mind.
German company needed its IT department scaled to supply an efficient digital platform to raise retail deposits and enable banks to expand their reach and source deposits from savers. Software Mind scaled its IT department by 300% while maintaining team cohesion and identity.
UK financial services company focusing on the B2B market required project management, code reviewing and security consistency assistance. Our dedicated team members helped this 500+ company successfully implement a digital transformation.
The best choice for a Western European company
When looking for the right outsourcing provider, one of the essential questions you need to ask yourself is whether the distance is critical. Nearshore software development is a logical choice when looking for a partner that is geopolitically aligned, culturally similar and time zone compatible.
To learn more about choosing the right software development services to drive your digital acceleration, attract new customers and engineer your software, get in touch with our top specialists by filling out this contact form.
About the authorSoftware Mind
Software Mind provides companies with autonomous development teams who manage software life cycles from ideation to release and beyond. For over 20 years we’ve been enriching organizations with the talent they need to boost scalability, drive dynamic growth and bring disruptive ideas to life. Our top-notch engineering teams combine ownership with leading technologies, including cloud, AI, data science and embedded software to accelerate digital transformations and boost software delivery. A culture that embraces openness, craves more and acts with respect enables our bold and passionate people to create evolutive solutions that support scale-ups, unicorns and enterprise-level companies around the world.