What does ‘nearshore Agile development’ mean? How it functions and how a business can select the appropriate nearshore software development team?

The challenge for software firms is constant – to improve their products and ship them in as little time as possible. Meanwhile, the costs of hiring professional developers from the local area can be prohibitive and hiring these professionals can also be time-consuming as well. That’s why agile software development nearshore is an attractive choice for businesses that require engineering teams with the skill-set needed, and without the complications of communication and time-zone issues that come with outsourcing to the “offshore” location.

The salient points that have been discussed in the industry about nearshore development of agile projects are always quicker feedbacks, overlapping working hours, cultural compatibility, flexible scaling and availability of niche technical talent. AI assisted development is another factor recently gaining attention in the scope of nearshore partners.

What Is Agile Software Development Nearshore?

Agile software development nearshore is a blend of Agile software development methodology and a nearshore software development model. Agile is based on creating software in small, bite-sized pieces. Teams have short development cycles, known as sprints, where they work through a development cycle in one month rather than months. They gather feedback on a regular basis and incorporate it into the changes in the product, as requirements evolve.

This is coupled with geographical proximity by nearshore development. A company collaborates with developers in the country or region where they live that has fairly the same working hours as those in the company’s country or region. This mix can greatly assist the collaboration process.

For instance, one company from the United States can collaborate with an engineering staff in Latin America. There may be some hours of overlap for business time between the teams. Developers can participate in daily standups, sprint planning, review and retrospective sessions without having to stay up late to participate. One of the reasons that nearshore Agile software development has become the focus of companies that want to strike a balance between cost, speed and collaboration.

Why Are Companies Choosing Nearshore Agile Development?

The traditional option is software outsourcing which can give access to the developers at competitive fees. But distance is a challenge. There may be a time zone difference which can slow down your response. There is a potential for disconnection in communication. Things can go wrong on a very detailed level and take a whole day to resolve.

Communication and feedback are crucial to agile development, and they have to be quick. These barriers can be reduced with a more integrated client / development team through a nearshore model. Time-zone compatibility, cultural fit, scalability and communication come in as significant factors in the consideration of a company for nearshore Agile teams. Time-zone compatibility, cultural fit, scalability and communication are a few of the most common reasons cited in the industry when considering a company for nearshore Agile teams.

Better Real-Time Collaboration

The communication of agile teams is regular. Requirements are discussed with the developers by the product managers. Designers can work with engineers. Reports bugs by the QA specialists. New features looked at by stakeholders. These conversations may be real time when everyone is on at the same time. It doesn’t mean that a developer will need to wait for the next day to receive an answer. A requirement can be clarified during the same working session by a product owner. This can reduce the time that elapses before feedback and thus minimize the occurrence of minor problems turning into lossy ones.

Faster Development Cycles

Typically, agile teams break down projects into smaller parts. They don’t try to develop a full application from scratch, but develop features and release them one by one. It is easy to see how this process plays out for nearshore teams, as they fit naturally into the process and can communicate regularly to plan sprints, conduct daily standups, review code, show and discuss results, and hold a debrief at the end of each sprint. This can lead to a streamlined development process and quicker response to evolving requirements.

Opportunity to connect with Skilled Developers.

It’s often hard to find highly qualified software engineers, particularly if the company is a player in the high dollar technology market. Nearshore outsourcing increases the talent pool with people outside the geographic bounds of the company.

There are several areas in which a company might find a developer that has experience in:

• Cloud computing
• Artificial intelligence
• DevOps
• Mobile development
• Web applications
• Cybersecurity
• QA automation
• Data engineering
• SaaS development

This means that nearshore software development services are helpful in the instances where a company requires specific skills, but would not like to enlarge its permanent employee base in that country.

Nearshore vs. Offshore vs. Onshore Development

It is important to know about these models in order to select a development partner.

Onshore development implies developing with domestic developers. Communication and the legal action may be easier, but the development costs will be increased.

Offshore development typically refers to development by a team that is far removed. It can provide cost benefits and pool of talent. But there can be substantial differences in time zones that can hinder real-time collaboration.

There is an ‘in between’ approach to nearshore development. The development team is in a nearby country or region, which may have similar working hours and good cultural and/or business fit.

This middle ground area can be especially beneficial when working on Agile projects, since communication is a key component of Agile and does not rely on occasional project updates.

How Does a Nearshore Agile Software Development Team Work?

Successful teams typically are part of the client’s internal team. Product discovery and planning may be the starting point for the process. Goals, technical requirements, priorities and the expected outcomes are set between the client and the development partner. The business priorities are used to order the product backlog. Each sprint, the developers will do tasks which are selected. All parties involved in design, development, QA engineering and product specialists work in concert throughout the process.

Team checks-in the work completed at the end of the sprint. Feedback from the stakeholders is taken into account and backlog is adjusted for next iteration. Task management, source control, communication and code collaboration can be facilitated using tools like Jira, GitHub, GitLab and similar.  This will enable the businesses to have a better glance at the development process.

The Role of AI in Nearshore Agile Development

Another factor that companies are taking into account when assessing software development teams is that of AI. Many modern developers are leveraging AI tools to generate code, create documentation, test and debug code, and review code. Modern developers are using AI assisted tools to create code, document code, test code, debug code and review code.

In recent years, industry reports have singled out the ability to work with AI as a new factor in the selection of a nearshore development partner.  But AI cannot be a replacement for skilled engineering judgment.

A good Agile nearshore development team should be able to recognize the benefits of using AI tools and when the human review is necessary. However, there are several remaining considerations for security, architecture, testing, data privacy and business needs that still need to be managed. Generally, humans are going to be the most important factor, and they need the right tools, which are going to be AI.

Which Projects Can Be Done with Nearshore Agile Development?

There are many projects for which Nearshore Agile teams can be helpful. They work well where there are changing requirements that are anticipated during development. Including SaaS solutions, mobile apps, eCommerce solutions, enterprise software, cloud application, API integrations or digital transformation projects. They also can assist companies to upgrade applications that are already in use.

It may be that a business already has an internal product team but just isn’t sufficiently resourced to meet the needs of a significant modernization initiative. With no lengthy recruitment process or retraining, a nearshore team can integrate additional developers, QA professionals, DevOps specialists, or even other professionals. One of the greatest reasons why nearshore software development outsourcing is most advantageous is its flexibility.

How to Choose a Nearshore Software Development Company

You shouldn’t just select a partner because of the costs per hour. While a lower-priced team is not necessarily the best option when there are communication difficulties or frequent developer changes, it may be the right option in today’s market. First, be sure to review technical experience. Inquire if the company has projects that are comparable to yours. Discuss its process of development, security measures, communication system and its quality assurance processes. Additionally, before hiring a team, it’s crucial to consider their Agile experience.

To think through with questions like:

• What is your experience with the Agile framework you use?
• How many times per sprint do your complete sprints?
• Who is attending the Daily Standups?
• How are progress, outcomes and progress assessed?
• How does it deal with changes in requirements?
• Who is owner of the source code?
• How to measure the quality of Software?
• What if developer should be gone from the project?

Pre-signing a contract, the overlapping of time zones should also be discussed. The intention is to not look for developers in an immediate country. The aim is to establish a development relationship which will enable quick communication and long-term development of the product.

Best Practices for a Successful Nearshore Agile Team

There are a number of practices that can have a big impact. First, make sure that there are clear communication avenues. The scope of discussions, technical decisions and key issues of a project should be known to everyone. Secondly, establish responsibilities with the very beginning. The client should be aware of who is responsible for the product backlog, the sign off of the requirements, the coding review and the final decision making on the product.

Thirdly, have regular Agile ceremonies. Sprint planning, daily standups, and sprint reviews and retrospectives are used to keep distributed teams aligned. Fourth, employ measurable objectives. Knowing how fast a sprint is happening, what quality metrics are achieved, how long it takes and what feedback customers provide can help to indicate whether the partnership is generating value. Last but not least, don’t look at the nearshore team as a stand-alone vendor, but as a part of your organization. They are likely to have strong relationships, which can result in improved communication and continuity.

How Much Does Nearshore Agile Software Development Cost?

There are a number of factors that will determine the cost. Some of these are developer experience, location, technology stack, project complexity, team size, engagement model, and contract duration. Nearshore development is typically touted as a compromise between high onshore salaries and offshore offshoring, which is far away. While it is estimated that there are significant cost savings over onshore development, this considerable varies by market and role.

That’s why companies should make comparisons based on the overall project cost, rather than the cost of the hourly rate. If the above is true, a slightly more costly team can produce better results: If they communicate well, have the experience they need, have less rework and get to production quicker.

Final Thoughts

Businesses can outsource software development services to a nearshore location that allows them to collaborate closely with the development team, even though it is located abroad. It merges the Agile benefits of flexibility with that of geographical benefits of nearshore development. Teams can communicate during overlapping hours, be able to quickly respond to feedback and can leverage specialized technical talent without having to hire all locally.

The model won’t necessarily be a success, though. Even with the right partner, communication process, technical standards, and security and Agile practices, it still matters.

Modern Agile software development is an ideal match for organizations that are looking to scale a product, upgrade an application, build a SaaS application, or complete specialized engineering requirements – offering the flexibility, collaboration and cost-efficiency they require. Given the shift in software development as technology evolves with AI powering the engineering process, the selection of a nearshore partner who has both solid Agile methodologies and up-to-date technology is increasingly critical.

FAQs

1. What is agile software development nearshore?

Agile software development nearshore is a blend of Agile development techniques and nearshore outsourcing. A company collaborates with a software team in another country or region, and it’s easy to communicate, collaborate and coordinate time zone.

2. What do you see as the advantages of nearshore Agile software development?

Its advantages are improved communication, the overlap in working hours, skilled developers, quicker feedback, flexible team scaling, and possibly reduced development costs in comparison to having a fully-in-house team.

3. What’s the difference between nearshore development and offshore development?

Nearshore development is generally when there is a team in another country or region, whereas offshore development is when there’s a team much further away. It’s often easier to work collaboratively in real time with nearshore teams that offer more time zone overlap.

4. What are the ways of selecting a nearshore software development company?

It is important to find someone who has a history of similar projects completed in the past, has good Agile principles, is able to use the appropriate development tools, has effective communication protocols, and uses security measures. It is also important to find someone who has the ability to provide accurate pricing and positive client references. The technical expertise needs to be taken into account as well as cost.

5. Is nearshore Agile software development cost-effective?

It can be. Hiring and operating in the nearshore region could lower costs, as well as access to experienced technical talent. But the total value is not just about the team, complexity of the project, technology needs and engagement process.