Nearshore vs. Offshore Software Development
The cause of these solutions is the absence of the necessary technical knowledge to efficiently complete intricate technology projects. Instead of investing lots of energy and money forming an expensive internal group, the less costly selection is to employ a software development firm. This enables firms to concentrate on essential responsibilities such as producing goods and satisfying customers. Bringing a business process back to within the company’s own nation, relocating it to a nearby country, and moving it to another country far away are three distinct types of outsourcing that are often mixed up. By having an extensive understanding of all of these ideas, we can pick the best choice for our company.
What is inshoring?
Many companies choose to outsource their IT services to a domestic software house, referred to as inshoring. This is a popular model of collaboration. The positive aspects of this model are plentiful; it offers cheaper rates than traditional internal services, the culture of the working environment is the same, and there are no cultural discrepancies that can lead to misunderstandings. Because of their close location and similar time zones, it isn’t hard to decide on working hours for the business which helps for a successful collaboration. What is the trick then? Companies in Western and Central Europe often look to local software development companies for cost-effective solutions. They face an unanticipated problem with a lack of skilled personnel since domestic software companies are unable to deliver the required abilities in a timely manner. Additionally, the cost of services is often lower than creating the software internally, but can still be expensive. It is sensible to look for affordable options in countries that possess an abundance of talented individuals in this case.
What is offshoring?
The majority of corporate executives have familiarity with the terms “nearshoring” and “offshoring” in regards to Business Process Outsourcing and IT outsourcing, yet they don’t have a clear comprehension of what they mean. Outsourcing and offshoring are both solutions that allow companies to gain access to skilled software developer teams from foreign countries, usually for a lower price. A perfect illustration is company X based in Germany planning to implement a software undertaking, like a pioneering payment process. The firm does not employ an IT department that is suitably trained for the project needs. Company X has offered the contract and the two IT companies selected in the end were one from India and another from Poland. What is the most suitable option for Company X to fulfill its requirements? This is an ideal illustration of outsourcing when taking the Indian contractor into account.
What is nearshoring?
When it comes to selecting a Polish provider, we have an excellent example of staffing services located in a nearby region. In the latter situation, the software creation crew is located remote from the business staff, who are likely to have diverse cultural backgrounds, time-zone contrasts, and communication barriers to overcome.
IT outsourcing in the Agile model
We are confident that the software engineering procedure handled by an experienced IT external firm should be carried out in an Agile fashion. Agile simply means that all of the software development processes go throughout the key phases of:
- and implementation or execution.
The development process doesn’t stop at the final roll-out. Regular updates and upkeep are necessary to properly carry out the Agile approach. When it comes to deciding between inshoring, nearshoring and offshoring, remember that your decision will affect the expense, timeliness and result of your software creation.
Is nearshoring of software development the best option?
Coordination between the internal squad and contracted squad is key for the accomplishment of the IT project when utilizing an Agile method. Regular communication is required. Software development that is done nearby surpasses outsourcing which is done from a distant location in numerous ways. The time-zone and geographical distance between these teams is drastically reduced, which provides the perfect conditions for Agile approaches to be employed successfully. Company X based in Germany and a Polish contractor have simple methods of collaboration and combining of their teams.
Software development in the CEE region
The Central-Eastern European region has become highly sought after as a hot spot for software development in 2021. Investors are choosing to contract out IT services to particular nations in Central and Eastern Europe like Poland, Ukraine, Romania and Belarus.
The reasons behind this interest are following:
- Large talent pool
- Skilled developers
- Good command of English
- High-quality services (including code quality)
- Favorable prices
- Rich educational potential including Information Technology
- Wide range of outsourcing services
Our research shows that there are more than 634,700 software engineers located in the Central and Eastern European region, with Poland having the most significant proportion at almost 280,000.
How about IT outsourcing to Poland?
Poland is one of the most sought-after locations for outsourcing software development on a global scale. The CEOWORLD Magazine says that Poland is the third most profitable place to invest funds this year. Poland is the ideal destination for European customers due to its convenient location and sound economy. Poland has an extremely focused economic structure, producing approximately 78,000 tech graduates every year, as well as a high concentration of developers with proficiency in front-end programming, server-side handling, API and Big Data.
Emergent Poland as a software house
When it comes to creating computer programs, Poland is a hot spot for opportunity. Firms all around the globe are working to maximize their returns on investment and cut their business outlays, leading outsourcing software development to become one of the most advantageous techniques, particularly in the IT sector.
By the end of 2019, there were more than 1400 business service centers in Poland, providing over 307,000 jobs in BPO, SCC/GBS IT and R&D programs. Since 2016, the amount of positions at BSC has increased by 43%.
The advantages of outsourcing IT projects to Poland
Provide us with approval and we will begin to work on the project in a period of two weeks.
Wide range of competences
Favorable time zone
Poland is situated in the middle of Europe and follows the same time as most other European nations. There is no interval of time between Poland and Germany or France. The variance in hours between Poland and the United States is 6 to 9.
Good communication skills
Don’t worry about communication problems. Our developers are fluent in English. They will be delighted to address any queries you might have.
In addition to coding, we provide expert advice, user experience and interface designs, regular maintenance and service level agreements, servers, and web hosting services. We can rapidly increase the size of the team by including experts in other technologies.
Flexible framework contract
The contract allows the client to place orders. The client determines the amount of work to be done per hour each month and the duration the order will take.
Why is Poland a great place for IT outsourcing?
Polish software development firms have rates that are highly competitive for IT solutions. Polish IT services are significantly less costly than American and Western European companies. PayScale stats show that the average yearly pay range for Polish developers is between $12,305 and $45,644, while American software engineers are paid between $48,542 and $102,337 every year. Polish IT services are relatively affordable compared to those of other European countries due to the low salaries of software engineers in Poland. The large variation in prices can largely be attributed to the rate of exchange and the comparatively low cost of living. Developers usually receive a lower salary, which translates to lower expenses for the development process. Companies often pick Poland to outsource to in order to acquire top-tier goods but at a much lower price. As an illustration, Roche Global IT Solution Centre possesses establishments situated in 4 distinct time zones in order to support customers. Two of them are located in Poland.
Positioning in Europe makes Poland a suitable choice for outsourcing. Outsourcing from European countries to Poland does not lead to any issues as both parties, the customers and the programmers, are located in areas with like time zones, facilitating digital conferences and phone calls. Additionally, tech hotspots in Poland are located in big cities which have airports nearby, so it takes an approximate 1-3 hours to get to them from big cities in Europe. The amount of hours that separate Poland and the US is contingent on the area of the US – starting at 6 hours for states located on the East Coast and increasing to 9 hours for those on the West Coast. This suggests there are still time slots that can be utilized each day to arrange phone conversations and keep in contact.
A stable economy
For companies who choose to hire out their services to somewhere outside of their own country, assessing the political and economic reliability of Poland is of utmost importance. Poland’s economy is strong and is firmly established in the marketplace. It is noteworthy that Poland provides numerous economic zones with attractive incentives for business owners. Taxes that favor investors and low prices make it a desirable place to establish a business. Poland experienced a hefty surge in its economic growth in 2019, with its Gross Domestic Product increasing by 4.5%, one of the highest growth rates across Europe. The coronavirus pandemic of 2020 only resulted in a minor reduction of economic development. An economy that is strong and secure is better able to withstand any economic troubles and provides businesses with a strong foundation for growth.
Advanced IT and tech infrastructure
Poland has excellent IT and tech infrastructure. Additionally, Poland is identified as an excellent center of technology and business services globally. Polish developers enjoy learning and gaining new knowledge. They use the latest tools and modern technologies. Poland also has state-of-the-art digital infrastructure. The Internet connection in Poland is consistently strong and reliable, with it being one of the most cost-effective countries to access mobile Internet in the world.
Growing ICT market
In developed nations, Information and Communication Technology is expanding quickly. Poland’s ICT sector has also been growing steadily. A large number of international businesses like Microsoft, Google, Samsung, and Intel have set up their headquarters in Poland. Approximately ten percent of ICT experts in Europe are of Polish origin.
Data security and intellectual property protection
Poland joined the European Union on 1 May 2004. Polish businesses must uphold all EU rules, including the General Data Protection Regulation. Thanks to this, software development projects made by companies in Poland keep to rigorous security parameters. The laws regarding copyright and intellectual property held by the European Union also align with the regulations followed in the United States covering data security and the protection of IP, meaning that businesses in Poland are able to meet the expectations set by the US in these particular areas. According to the U.S. In the Chamber International IP Index 2020, Poland is positioned 18th in terms of the proficiency of safeguarding intellectual property. This makes Poland an exceptionally secure place to outsource to.
Cultural similarity is a key factor in successful cooperation. It encourages effective communication and strengthens the ties between business partners. Polish culture is similar to Western European countries. Software development companies in Poland operate and manage their operations in a similar manner to most of the other nations in Europe. A lesser disparity in culture minimizes conflicts and helps evade confusion. It is also easier to understand the client’s needs. In contrast to countries like India and China, Poland is very accustomed to the American workplace ethic, which sets it apart from other popular outsourcing destinations. Poland shares the same standards as those found in other Western European countries when it comes to honoring human rights and labor regulations. European nations have a vested interest in protecting animal rights and preserving the environment. They rarely get blamed for taking advantage of laborers or engaging minors, which sadly is a common occurrence in India and China.
Are you aware that Polish software engineers are some of the top in the global arena? HackerRank has reported that Poland is ranked third in their assessment of the “Which Country Has the Best Developers?”, following China and Russia respectively. Numerous programmers from Poland have been successful in different international programming competitions such as the Microsoft Imagine Cup, Top Coder, Google Code Jam, and other challenges. At the 2019 Association for Computing Machinery International Collegiate Programming Contest, a development team from Poland earned the highest reward, the gold medal. The qualifications of Polish developers stem from the fact that they have a robust educational foundation, plus they are able to pick up coding quickly quicker than those from other nations.
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