A lot of countries that depend on software have traditionally looked to places like India and, to a certain degree, the Philippines or Southeast Asia for remote software development. It’s very easy to see why this shift occurred.
Now, initially, let’s not mince any words here, it was due to wage costs. For the longest time, wages in India and the Philippines were so much lower than wages in places like California, New York, London, and other similar locations.
Well, believe it or not, when factoring in productivity as well as work value, it turned out that outsourcing purely for cost reasons was not a good idea.
In fact, if we only did a dollar for dollar comparison as far as productivity is concerned, believe it or not, western labor markets tend to outperform “cheaper wage” producers.
Why? Sure, you may be paying somebody $20 an hour in the US, but thanks to the software that that person is using as well as the special training that person went through, that person is so much more productive. And whatever they produce tends to hit a fairly high quality standard.
This can’t be said of all outsourcing setups. Now, this varies from set up to set up. Your particular setup may be different.
But when it comes to large systemic benefits, American and Western and European companies no longer outsource primarily to save costs. Instead, they outsource to find talent.
Because for whatever reason, in the United States, if you are very big into sciences or programming, people think you’re some sort of social leper. Chicks don’t want to talk to you. People don’t want to acknowledge that they’re friends with you.
I know, high school can be rough in the United States if you are “nerd.” But unfortunately, that has a huge social impact on people going into engineering.
It is no surprise that American companies then started importing lots of Indian engineers so they can be supervised directly within a US environment to overcome any strategic disadvantages of outsourcing. Now, as you can well imagine, this is kind of an extreme way to solve a problem.
Thankfully, a lot of companies in Western Europe have come up with a really good intermediary solution that it’s beginning to look like a permanent solution. This is called near sourcing or near shoring.
How does this work? Well, instead of offshoring your software development and content creation needs to the other part of the globe and having to worry about time zone, work, culture and productivity differences, you only need to turn to countries like Romania, or countries bordering the Adriatic, for you to get cheaper work done on time and according to standards.
I know that sounds too good to be true, but near shoring is getting really big nowadays, and it’s because of the key strategic advantages that this particular accommodation brings to the table.
So if you are doing any kind of high level software development that you really cannot outsource easily, you might want to consider dotNear.
DotNear is a great company based in Romania that specializes in near shoring long term and short term solutions for clients in Western Europe as well as North America.
Do yourself a big favor, regardless of whether you are a company founder, a venture capital investor, or a manager in a technology company, you need to read up on near shoring and get in touch with dotNear to see what kind of options are available to you.