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.