What is near-shore software development?

Organizations today are trying their best to reduce average cost of production and increase their profit margin or in some case give price relief to their customers. With the increase in competition levels around the world firms are looking left and right to increase their productivity levels and generate more revenues. However this may sound easy but in truth it takes a lot of thinking and managerial input. One method adopted by organizations to reduce their budding cost levels is the concept of outsourcing software development. Outsourcing software development has three different layers; Onshore, Offshore and Near-shore.

The term near-shore was first introduced back in 1998 when an American software development company decided to set up business in the Caribbean island of Barbados. Near-shore software outsourcing is an easier alternative to offshoring since it enables the organization to take advantage of lower costs (but potentially not as low as offshore) but with a close physical location, easy communication and the same time zone. The use of near-shore software development method can help negate certain drawbacks of outsourcing. One of the potential drawbacks of outsourcing was the lack of communication between the firm and the hired client. To eradicate or minimize this risk, the methodology of near-shoring was adopted. This would allow the firm to employee a contractor that is in a relatively close proximity to the parent firm and operates in similar time zones. Therefore, by adopting the method of near-shoring the firm can build a better communication network and incorporate relevant and appropriate feedbacks.

However the issue with using the method of offshore outsourcing is that the firm can face language barrier problems, and due to the long distance the quality of communication gets hampered. With the increase in geographical distance, the time zone varies further handicapping the quality of communication between the firm and their outsourcing partner. In this regard, most of the companies adopting near-shore outsourcing methods try and work around the possible communication barrier by making changes to their organizational culture are adopting a more flexible organizational hierarchy where the outsourcing partner is incorporated. Hence, they try and look for new market segments or development source that is in closer proximity and allows for ease of access.

Near-shoring allows an organization to operate in an environment which they are completely familiar with. It is essential that an organization is aware of the macro and micro environment workings of the country where the organization is planning to near-shore. With similar time zones, language, work ethics and labor laws, the organization can ensure a smooth working environment.

Countries and companies that view themselves as near-shore position themselves as offering some of the benefits of offshoring (namely cost reduction), while mitigating other difficulties—especially those imposed by distance. Most firms today are using the concept of near-shoring to promote cultural integrity and to position themselves as a global firm operating in more than one country.

With the threat of intellectual theft becoming ever present as technology advances, organizations are trying to bring operational activities closer and making a more compact organizational culture. Therefore, near-shore software development and activities have gained wide, spread acclaim. Not only are organizations trying to reduce the threat of cybercrime, but by adopting near-shore outsourcing practices the parent organization is in close proximity to the clients and their customers. Therefore this increases the applicability of the customer responsiveness and decreasing the turnaround time. Thus this allows the firm to make necessary changes to the product based on the relevant feedback given by the consumer.

Mindfire Solutions has been providing expert offshore software development services since the last 16 years. Our clients have praised our software development services and customer centric behavior through their testimonials that can be found at Mindfire Solutions dot com. If that convinces you enough to test our strengths in software development please drop in your requirements to sales at Mindfire Solutions dot com.

The Importance of Non-Disclosure Agreements in Outsourcing Software Development

A Non-Disclosure Agreement (NDA) is a term which describes a pact between two or more parties. It is used to limit the original members from telling the information to someone else or to someone who is not part of the initial agreement. Such an agreement is usually done to make sure that important information is not leaked or is made public. Such an agreement is necessary to use when trade secrets are discussed and is used when a new and previously not known technology is used. Usually, this type of agreement is signed when organizations are in practice of using the concept of outsourcing.

Outsourcing is somewhat of a new procedure where organizations are looking for cheaper way to get their work done. Outsourcing can be either Near-shore or Off-shore. The major difference between the two methods is based on geography. In near-shore outsourcing practices, an organisation looks for closer partners to work with. Partners with which the outsourcing firm shares the same time zone, language and work standards are preferable. In contrast, when offshore outsourcing is used, firms work with partners who are in a completely new region which follows a different time zone and has different working standards. Firms when using the concept of outsourcing for software development need to share important information with their partners and trust them that the information will not be leaked or made available to a third person. In such case, outsourcing firms usually ask their outsourced partners to sign an NDA. The importance of following such a practice is high because companies, while outsourcing, allow outside employees to go through private details of the firm like information about the company’s shareholders and the type of technology and working methods they use. If such information is made public, competitors and rival firms can significantly benefit from it.

Companies using outsourcing partners to develop software for any purpose are more careful and usually ask their offshore software development partners to sign a NDA form. Obviously there are threats in offshore software development and these firms must be careful of virus attacks or being a victim of counterfeiting. In some cases, firms ask their outsourcing partners to develop certain software to operate machinery or equipment which is new and not many people are aware of it. This technology may be part of the firm’s strategy and the organization does not want that information be disclosed. In this case, having a NDA with the outsourced partners is critical as they are aware of what information they cannot disclose to an external source. Furthermore, the benefit of using a NDA is that it makes sure that there are no communication gaps between the two partners. Everyone is aware of their roles and they know what is right and what is wrong. This allows the entire work procedure to run smoothly without any unnecessary stoppages.

Lastly, for those businesses that are using outsourcing to develop their company software must be aware about the use of NDA. Through an NDA, they can limit the use of their outsourcing partner and restrict them only towards the actual job they are hired to do. The outsourcing organization can always be in control when using NDA. If something goes wrong through the use of NDA, the firm can control the damages. Also the outsourced partner is aware of the legal cost if they break the pact. Therefore, it is good that firms who use outsourcing partners make a NDA and get it approved by their partners. Businesses that are in the information and technology industry are now adopting the use of NDA as outsourcing has become a common practice.

Mindfire Solutions has already carved a niche for itself as one of the premier vendors offering offshore software development services to its SMB clientele and help them excel in their core business. If you are interested to hire the expert software services of this 16 year old organization then do send in a mail with your requirements to sales at Mindfire Solutions dot com and we will get back to you in 72 hours.

Checklist for outsourcing software development

As globalization increases with every step of the way, companies and major organizations are moving towards the concept of outsourcing and using external contractors to get relevant software and production processes developed. However, outsourcing brings with it an increased amount of security and trust issues. Companies usually have very important trade secrets that they would not wish to be disclosed. Therefore, sharing company sensitive information with a client who is not physically present can be taxing. Over the past years many outsourced projects have taken a turn for the worst, where either due to mismanagement the project failed delivers on the desired results, or due to certain negligence trade secrets or sensitive company information was leaked.

In order to avoid such a scenario, companies must undertake a proper background check of their client whom they intend to work with. Following is a checklist that companies can follow when choosing their outsourcing partner.

Make a criteria list: A list of criteria must be established that the outsourcing partner should follow. By outlining the essentials both the firms doing business together are aware of their rights and limitations. All ambiguities are sorted out, and work can commence in a proper way. By doing so a proper framework is established through which the business venture can move ahead in a professional way. This would reduce the chance of any unforeseen risk and deadline breaches. Furthermore the firm would not have to spend additional amount of capital on contingency plans.

Compile an alternate client list: It is always prudent to have backup or alternate options in case the primary client, either back out or due to some reason is deemed as unqualified for the job. By having a list of alternate outsourcing software developers, the respective organization can reduce the cost of finding clients every time. The alternate list can also be used for future outsourcing plans and would save the firm valuable time on researching upon prospective outsourcing clients.

Background check is a definite to-do: Undertake a credibility check of the outsourced partners. To make sure that the outsourcing company’s software developers are credible and reliable; a proper background check regarding the work efficiency of the partner should be undertaken. It is essential that the following outsourced partners are using legitimate production techniques and have a reputation of delivering on time and are not regarded as a company that is known for slacking. It will be ill advised if the firm neglects doing the appropriate credibility check because there might be a chance that the outsourcing partner usually breaches deadlines or has a reputation of committing some sort of felony.

Narrow down the list of alternates: After the complete due diligence process, the list of potential alternates can be reduced and only those that the company sees as a future partner can be left. This allows the organization to focus their energy on the important alternates and take an informed decision.

Select the best of the lot: The last aspect on the checklist is the selection of an appropriate client/partner. After all the necessary information is collected and the outsourcing software development partner is chosen the respective company can visit their offices and have interactive meetings so that a proper understanding is established between the two partners. Even though the process is only for a temporary time period, yet the cost associated with the project and the sensitivity of it, compels the organization to undertake the entire checklist procedure.

Trust form the basis of any long term relationship but that does not mean one would choose its software development partner based on all that. A due diligence and meaningful interactions could save a lot of time, effort and money in the future. So when you choose your software development partner choose wisely. You may also like to check out a 16 year old offshore software development company who has a reputation for having constantly delighted its clients over the years. If you need a software development partner to help you achieve your business goals, reach out to us at sales at Mindfire Solutions dot com and we will get in touch with you at the earliest.

Why it is Safe to sign a Non-Disclosure agreement with an Offshore Software Development Company?

“The most valuable business commodity is Trust! For any successful business, there must be a higher level of trust between the two parties. But it is next to impossible to trust over someone when the business will run over a unique idea or intellectual property instead of any tangible property. Isn’t? There are many burning examples where the business man has reached to a great level with the help of other’s idea being stolen. Even one of the top IT giants in the industry had made its presence in the industry with the virtue of someone else’s idea. In IT industry there is a terrific threat of loss of business idea or we can say Intellectual property during the transaction, so it is always recommended to take all possible measures to avoid any such unpleasant experience”.

What is Non-Disclosure Agreement (NDA)? The best way to keep something under your control is through a legal agreement. Similarly, to keep your idea secret from others, you can make an agreement with your business partner for the future of your hard earned money. When you choose to outsource your application development work to an offshore software development company, you must process an agreement with them about the secrecy of your intellectual property otherwise your idea may be executed by them in their name and they will get all benefits of yours and you will end up with a huge financial loss. To avoid this issue, you can take the help of NDA i.e. Non Disclosure Agreement. NDA is a legal entity or legally enforceable contract that prohibits the leak of your information in the industry from the offshore software firm. It keeps every aspect into consideration like no leak of intellectual property during and after the development process by anybody who are associated with your project development. There are many other things to consider as well for a good business. We will consider them latter.

Safety and NDA: IT industry is driven by an intangible idea or we can say intellectual property. A good concept can make you billionaire if get executed properly. Facebook, Twitter or Orkut all are nothing but a concept or simply idea; but their execution was so beautiful that they become a one website industry. This hints the importance of new concept or idea for a successful business. If their idea would have stolen before the launch of these products, then what would happen? They could never turn out as a successful business model. So, while developing any application or product, we must make sure that our idea is safe with the offshore company otherwise we cannot achieve what we are dreaming for. Non-Disclosure Agreement can definitely help you as a strong safety measure.

Should you sign a NDA with an Offshore Software Development Company? This is the biggest question regarding NDA. Yes, there is definitely need of NDA for the success of your business; but the NDA should be comprehensive enough. If you have not focused on every aspect of security threats for your application or product then, NDA is simply worthless. Make sure that the Non Disclosure Agreement that you are going to sign with your offshore software firm is really beneficial for you. Because sometimes, some unreliable software companies hide some terms and conditions in the NDA and that might create a big problem for you in future. Imagine they have prepared a Non Disclosure Agreement for you regarding keeping secrecy of your idea during the development process. But if you disconnect your relation with them for some reason during the process then what would happen? Will they still continue to keep your idea secret or not? If they will start a new product with your idea and launch it in the market before yours then what will happen? It can create heavy loss for you. So you should read each and every terms and conditions of the agreement before you sign it with your partner. You should check every detail of the NDA and if something is missing you should ask for modification before you sign up.

Make sure you have taken all possible steps before preparing a NDA: Signing a Non Disclosure Agreement with your partner is a good idea; but again it should be compressive enough to keep your intellectual property safe for longer. It is always recommended to prepare your NDA with the consultation of legal advisors from both parties. Sometimes, some rules are followed strictly in a country while it has no significance in a different country. So, it will create problem in future. For a secure business, you should consult legal advocates from both locations i.e. from yours and from the land of developing country so that you can prepare a strong NDA for your concept. There should not be any loophole in your NDA. For the same; you can take help of any other businessman who have experience in outsourcing project to a remote location. His experiences will definitely help you lot while preparing the NDA. He can inform you all possible threats associated and accordingly you can access and prepare a better and stronger NDA.

It can avoid all possible threats in your business: With NDA, you can avoid all possible threats of loss of information about your concept only if it is really detailed enough. Once you able to prepare it properly with all possible consideration it will help you a lot till the end of your project. Few important considerations are: must include all members of the development team of the offshore software firm in your NDA; because they may disclose it to someone else or even on the social networking sites. So, you must enforce them in prohibiting from these types of behaviour. 2ndly, what would be the time period? Usually, people keep it up to the end of the project, but that is not at all wise!! You should keep some extra time beyond the project duration for your safety; something like extra 2 years or so on sounds better. Now, you should also ask for extremely tight security of your project codes, designs and discussions with the developers or project manager; because they are the core element of your project. The offshore software firm should be asked to sign NDA from all its associated employees to avoid any leakage of information in the process. If all these things are considered and made available in the NDA, then you need not to bother about your intellectual property and have a peaceful sleep at night.

At Mindfire Solutions, we are experts in offshore small team software development and we have been serving our 300+ esteemed clients more than 15 years now and have executed over 1000 projects in various technologies and domains. If you have any custom application ideas in mind and need our expertise, please feel free to write to us at sales at mindfiresolutions dot com and we will revert back within a business day. You can also avail our limited period risk-free trial offer now.