Offshoring is currently breaking paradigms and as a result, expands the market worldwide.
Companies that use outsourcing functions that are not their core competency, such as IT or HR, is nothing new. This trend started early in the 1990s and has only increased in pace since then. To that point, in 2016, the number of jobs outsourced from the United States reached 1,457,000, with the IT sector leading the way. Computer programmers and software engineers are in the highest demand with 211,700 outsourced positions in 2015. Choosing to outsource may be due to a variety of reasons though, historically, saving time and money is at the forefront. While cost savings remain a primary goal, the evolution of outsourcing has trended towards businesses’ desire to tap into the worldwide knowledge base when they are unable to obtain the resources locally.
Globally speaking, there are two different ways of outsourcing, based primarily on geographical proximity, known as offshoring and nearshoring. In the past, there was a preference for offshoring to distant regions with an eye toward cost-cutting. Indeed, the cost-cutting criteria held the highest percentage of consideration for offshoring, ranging from 80% to 90% of the overall rationale. However, this decision failed to adequately consider other crucial aspects to a company’s long-term vitality, and, since then, the U.S. companies have been moving their production back to the Americas, favoring a shorter region-based supply chain. This emerging trend for nearshoring is continuing to grow due to the desire for a more collaborative relationship, faster responsiveness, and decreased turnaround time.
When speaking specifically about software development methodology, different business practices are apparent between offshore and nearshore providers. While offshore primarily favors the waterfall process, Cinq’s nearshore advantage utilizes agile methodology. The waterfall process follows a pattern that is heavily impacted by the optimal currency in business and life: time. When the hiring company sends their defined idea to their offshore business partner one day, the next steps are in offshore companies’ hands, planning and building, and then sent back to the hirer company to review and test. Days go by where communication is difficult due to opposing time zones, which results in few live interactions or fluid adjustments, and there is an overall philosophy of many offshore sites to follow requirements as given, without questioning or bringing insights for improvement.
In contrast, Cinq’s cooperative style allows for daily meetings and fast communication as well as being consultative by nature. While many offshore companies deliver a product that meets your specific request without straying from the plan, Cinq’s consultative approach provides companies with experience, insight, and questioning that can help broaden, and improve upon an idea. This methodology seeks out and targets issues before they come to light while taking your application and software needs to new heights.
In breaking down other positive features to the nearshoring approach, the advantages are clear:
1 – Ease of communication
With virtually synced time zones, Brazil is one hour ahead of Eastern Standard Time (EST).
There is real-time communication with your Cinq team during the working hours.
2 – Improved Speed to Market: Waterbit & Dexence Case Study
When WaterBit, a California-based Agtech startup, needed a custom IoT software platform for their Precision Irrigation Control Technology, Dextra/CINQ delivered.
Waterbit CEO, Manu Pillai, mentions his gratitude for Dextra/CINQ’s exceptional time management that got their product to market well ahead of schedule.
3 – Business and cultural Alignment:
Similarities in business culture and work styles allow quality interactions between the U.S. and Latin America.
At Cinq, we use to say that we take our clients beyond the code, meaning that we employ a proactive, consultative approach to engage our clients.
With the large experience in IT that Brazil has, covering almost five decades, it is no wonder the tech industry grew 20% between 2014 and 2015. With so many experts in IT, Brazil continues to grow and emerge as a strong candidate for complex technology projects mainly, software development. In 2016, the A.T. Kearney Global Services Location Index ranked Brazil at 4th position amongst 55 countries based on three main categories: financial attractiveness, people skills and availability, and business environment, up 4 positions from 8th in 2015.
While the U.S. trade flows have primarily been by long-distance, East-West in nature for nearly two decades, they are quickly shifting. The old way of outsourcing is being replaced by a shorter, more region-based flow, for instance, between the United States and Brazil, where the IT capabilities are endless.
“We needed to work with a team that was exceedingly fast, competent,
and easy to work with, and for that, we partnered with Dextra/Cinq”
Manu Pillai, Waterbit CEO
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