26 Aug Nearshore software development
Why would I go for nearshore software development?
There are multiple benefits to outsourcing software production in Eastern Europe. On the surface, there are a couple of clear ones first:
- The time difference for other European companies is negligible.
- Young people have high proficiency in English, so communication is not an obstacle.
- There are no significant cultural differences that need to be overcome. With countries outside of Europe (typically to the East) this has been a challenge historically
- Many people there have no problem maintaining different shifts. In fact, it is typically easier to provide a 24 / 7 service when you are outsourcing in Eastern Europe, rather than in any Western European country.
- The costs of doing that are outrageously low. The costs of both office rentals and remuneration packages are up to ten times lower than in most Western European countries. The shocking part is that this does not mean lower quality by any means. Stay tuned for our case studies to see the proof of the opposite.
Are there any case studies to confirm that?
If nearshore software development is on your bucket list, then you need to know that you are by no means a pioneer of this idea.
In fact many major software companies have already built their own offices in Bulgaria and have seen tremendous impact.
- As of writing this article (March, 2015) Google have announced that they will be opening a brand new office in Bulgaria.
- Hewlett-Packard has an office in Bulgaria that is continuously growing ever since it was established.
- And most importantly for Business Intelligence companies – SAP Labs has its second largest office situated in Bulgaria. A lot of their new products and new product versions are a result of nearshore software development.
Obviously if the leading Business Intelligence software solutions provider SAP Labs can trust Bulgarian specialists to develop their products, the quality of education and professionalism in this Eastern European country is present.
What other big companies have seen success doing that?
Just in Sofia, there are currently more than sixty software companies that do Business intelligence related work. From software development, to consultancy to etl testing and all types of related work – the whole market is blooming there and there seems to be no stopping.
And yes, we agree that nearshore software development does appear risky at first. In fact, in many countries it can be a hit-or-miss thing – meaning that while often times you get quality service for a shockingly small price, other times you might find yourself having lost time and money.
The risk does appear significantly lower in Eastern Europe, though. For example, Experian, the market leading decision analysis and credit score solutions provider has seen great success with its relocation to Bulgaria, expanding its office multiple times since its first relocation less than a decade ago.
Not to mention, big corporations such as HP, Google and Experian do not show the full picture. Small businesses are blooming as well.
So how can I easily enjoy all the benefits of nearshore software development?
Xadat makes it easy to reap all those benefits, while taking any remaining risk completely out of the occasion. You will be able to enjoy cost-efficient labor, provided by professionals showing no cultural difference and no lack of English proficiency – with the time zone allowing easy communication throughout the whole working day. Check out our contacts section for more information.
Mondy Holten, SAP BI Consultant
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