Cost savings. That’s the first thing that comes to many people’s mind who think of nearshoring / outsourcing. You can take programmers from another country and give them projects to save costs. We certainly do not deny that you’re profitable by turning in nearshoring, but is this the reason number 1?
Before we go further, let me tell you about what is nearshoring. According to Wikipedia’s, nearshoring is the outsourcing of business processes, especially information technology processes, to companies in a nearby country, often sharing a border with the target country. Both parties expect to benefit from one or more of the following dimensions of proximity: geographic, temporal (time zone), cultural, social, linguistic, economic, political, or historical linkages. The service work that is being sourced may be a business process or software development.
Every day we’ve got a contact with companies that are looking for a programming team (or a single programmer) in Indonesia and Netherlands. We always write down the reasons why someone would put nearshoring or outsourcing. Cost savings is our number three reason for nearshoring. So what is the main reason?
We give you insight into the salaries of programmers. A fixed fee is required for all administrative and financial matters. The monthly cost which you give to our programmers (according to our calculation) are 40% cheaper than the cost you spend in the Netherlands. The cost is certainly an interesting reason to believe people across the border.
Rapid scaling is important when it really goes well with your business, but downscale is equally important. Unfortunately, companies in Netherlands do not have this flexibility. Many companies who work with us have experienced this in 2015-2016. They had to lay off a lot of people and the rebuild the organization again. Now they do it rather differently, with flexible forces. Many companies therefore now pulling back on and many companies opt for nearshoring.
The main reason why we started to build a programmer outsourcing, to fight against the deficit in the number of programmers. Nothing is as disturbing as when you have a big IT projects in your company but you can not grow stagnation in hiring new staff. There are so many cases when some companies take more than ten weeks to recruit a good programmer to get started.
So, if you have any vacancies in your company. Do you want to tackle it more flexible and spend less? Then nearshoring might be the best solutions for you. Let us know!