Nearshoring is back to trends, why?

Let's dive into the dynamic world of software development. It's like surfing: always moving, always exciting, and if you catch the right wave, it's sooo satisfying. Waves come and go; sometimes, we try other waves, but there's always THAT wave that works for you. In the software industry, that wave is nearshoring, and it's back! (Or has never gone).

Let's start with a timeline: Remember when offshoring was the go-to move? Usually cheap, but oh boy, it came with its share of headaches – time zone tangles, cultural clashes, the works. Then people realized that nearshoring is like the cool cousin that shows up and solves all these problems. It's about staying closer to home, meaning working with teams in similar time zones and with fewer cultural barriers. This isn't just convenient; it's smart business. And we've mastered this art, connecting businesses with nearshoring teams that 'get it.' 

 
But when the 2020 pandemic struck, companies started looking for other ways, either cheaper or with less control, mainly to solve quick and short-term hiring issues. That's when remote freelancers and payroll companies started to appear.

While freelancing seems like an easy way to hire and take advantage of some cost-cutting, usually, it is not a solution for long-term commitments for several reasons. First, you still need to search and find skilled people willing to work in this model. It's hard to make people commit when there's no long-term guarantee, and they are usually working on several projects, which tends to impact the quality and speed of their delivery, translating into poor quality and sometimes even compromised deadlines in some projects. Organizations saw the coming and frantically going off talent.

Next, we have global employment solution companies. Which provides the payroll and eases the bureaucracy but doesn't control, monitor, or have any responsibility regarding work done by people hired. You still have to find the talent, onboard them as your employees, and do all the rest as you would with a regular hire. This works if both companies (and the candidate) are in the same country. Otherwise, it comes with risks such as not knowing the labor and tax laws in the person's country, which can represent a lack of flexibility, contractually speaking, misunderstanding salaries and benefits, and in the end, providing a bad experience for your "almost employee." 

 
In some cases, neither freelancers nor people hired through these companies can count as your headcount anyway. 

  It's been some years since 2020, which means companies have had the opportunity to experiment with the "new" options in the market, and nearshoring once again appears like the best option.

In this model, teams are an extension of the existing teams, and for the people, well, they have two-side support - the company itself and the nearshore provider. There's performance control and a sense of belonging somewhere, keeping the quality high and working excellently in the long term.

 That's where Velv shines. We are all about pairing cost-effectiveness with top-tier talent. With Velv, you're not just cutting costs but investing in quality and innovation. We are global, and that is reflected in our talents and opportunities, which fit precisely your needs. 

In the fast-paced software development world, it is catching the right wave matters. Nearshoring wasn't just a trend; it is back, and it's clear than never that it is here to stay.

 So yes, nearshoring is back, and Velv is leading the charge in Europe. 

 Dive in and discover Velv.

Written by Nuno Godinho, Velv’s CIO.