Nearshore Programming Outsourcing: Shifting programming activities to neighboring countries has become a major trend in the software industry.
What are you doing and what problems are customers coming to you with?
Our customers employ teams for the development of specific and customized software – for web applications or workflow-based systems, for example. Sometimes it is a team, but often several – mostly between 15 and 50 people, sometimes much more. These are often our own employees of our customers, but often also external agencies.
Growth of our customers, eg through digitization, is very often done today by software. And at the same time they reach their limits: they need more capacity for software development, but they can not either win or “manage” the corresponding employees at their existing locations. And agencies are often too expensive and do not provide employees on a long-term basis. This means that know-how is lost in the long term.
Which companies are these?
The companies we talk to about nearshore programming outsourcing are often established companies with millions of dollars in revenue and hundreds or thousands of employees. But we also like to work with startups that need long-term access to technological know-how. Many of our clients are located in big cities like Hamburg, Dusseldorf or Munich. Some, but also in more rural areas, where they certainly can not access a wider range of software talents.
And then you come into play. Summarized in one sentence: What do you offer to the companies?
We get exactly the software development teams they need for their projects. We involve them closely in the customer organization and motivate these loyal employees to excel in the long term. So we solve the most pressing problem of our customers, the availability of top talent in software development, in an unconventional way.
We take a closer look at the terminology that is often used in this context: “nearshoring”, “offshoring”, “outsourcing” – do the three terms actually describe the same process when it comes to software programming?
“Nearshoring of IT” and “offshoring” describe similar approaches: in both cases companies from Germany “borrow” workers from service providers abroad for their software development. In the case of nearshoring, this is the neighboring European countries, for example, Bulgaria, Poland – or Ukraine. And in the case of offshoring, this is the more distant foreign countries, such as India, Vietnam, Mexico.
What we probably would be at an important advantage in outsourcing programming services to neighboring countries …
Yes, with nearshoring you can work synchronously because they are all in the same time zone. With offshoring, you have to work across time-zone boundaries, so that synchronous communication is difficult and rare. In both cases, however, the content and control of the client.
… and outsourcing?
In outsourcing, on the other hand, parts of the content management are transferred to the service provider, so that the client merely defines the result, but not the way there. He hands over significant parts of the control to the outsourcing service provider.
You have a customer who chooses nearshoring of IT projects to Ukraine. In what steps will cooperation be initiated?
In the beginning, we always understand the customer organization: we look very closely at how software is produced there today. Which systems are in use, which processes, how is communication, which road map should be reached in the next 12, 18 or 24 months? Once we understand that, we will develop an onboarding plan for our employees and ensure that they become productive rapidly. Usually, they can commit the first code after 14 days. In addition, we always bring the new team members physically into the offices of our customers. And we also invite the employees of our customers to Ukraine, so that everyone can get to know each other and work together in a spirit of trust.
And then we lead the tech talents in the long term, through numerous discussions and measures, so that our customer can count on these employees permanently and in the long term.
How quickly can new, additional IT experts be found if necessary?
Depending on the task and the required specialist knowledge, we require between 7 and 10 weeks from the vacancy to the first day of the new employee. Our fastest occupation was accomplished in three weeks. Ukraine is a very fast job market; As a rule, employees have a 14-day notice period so that they can quickly terminate with their previous employers. And with us, they stay long term, because of the perspective, the exciting projects, and the culture.