Nearshore vs Offshore IT Outsourcing
There is a growing trend of Dutch Tech related companies making the decision to outsource their software or web development to distant countries in South America, Asia and Africa. The main reasons for this offshoring are usually concerned with reduced labour costs and the lack of qualified IT personnel in The Netherlands.
However, questions regularly arise around the quality and the cultural match of developers from this region and the associated time differences. The accessibility of distant outsource / offshore locations is also often viewed as an obstacle. Flying in a staff member for a period of a few weeks or visiting these locations is often challenging and impractical.
In addition to offshoring, the term nearshoring is being utilised more frequently. Both terms refer to the practice of outsourcing software or web development abroad. The difference, however, is that offshoring often refers to outsourcing outside the EU (e.g. South America, Asia or Africa). Nearshoring on the other hand, refers to outsourcing to countries which are geographically closer, for instance Spain, Portugal, Greece or Eastern Europe. At Oscala, we have extensive experience operating in Spain.
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Although less widely recognised as a Nearshore destination, Spain offers the same employment advantages as Eastern European countries such as Ukraine and Lithuania. These benefits include a large pool of highly skilled Software Developers who are experienced in state-of-the-art technology and practices, relatively low labour costs and flexible employment legislation. It is therefore anticipated that the popularity of Spain as a Nearshore destination for Northern/Western European companies, will continue to rise.
In contrast to Eastern Europe, the Spanish corporate culture and work ethic within the Tech community, is comparable to the Dutch attitude in the workplace.
From our IT development centre in Valencia, we can help you source qualified IT personnel promptly. There is the possibility too, for the Spanish Developers to work at your office in the Netherlands for a set period or alternatively, for your Dutch team members to base themselves in our Spanish office from time to time. This significantly increases commitment and cohesion and is more likely to lead to successful outsourcing.
Advantages of nearshoring
compared to offshoring:
Qualified staff from recognised universities / colleges
Plentiful supply of personnel at reasonable salaries
Simplicity, low cost, high flexibility
Easy to travel between destinations
No time differences between locations
From our office in Valencia, Spain (partly staffed with Dutch-speaking personnel), we are perfectly placed to recruit highly experienced IT professionals. Óscala offers a full-service solution. The services include the following:
- Total employment costs
- Recruitment costs
- Travel costs
- Office space
- Local supervision
The recruitment and selection process will be conducted in close consultation with you and your team. The selected English speaking candidates will work exclusively for you. You and your employees are very welcome to visit the Spanish office at any stage, for either training, consultation or for team building purposes. Alternatively, the Spanish developers can easily visit your office in the Netherlands with an easy commute from Valencia. This makes travelling more convenient in comparison to outsourcing to countries in either Asia, Africa or South America. Working in the same time zone and culture also enhances communication.
For development teams consisting of five or more members, there are also options to set up development centres in Madrid or Barcelona.
Valencia is the third largest city in Spain and is an enterprising and innovative city. With no fewer than 11 universities, there is a large pool of fully trained high-quality developers. Valencia ranks 4th in the Human Resources Category (according to FDI Intelligence report). Salaries are respectively 21% and 15% lower than in Madrid or Barcelona, allowing for a reduction in costs. Furthermore, Valencia is directly accessible from Amsterdam, Rotterdam and Eindhoven airports.