The Rise of Nearshore

The Power of Proximity
by Darko Stavrov

Offshore Fatigue Accelerating

For many (of us), the Offshore fatigue among European companies is not surprising. The “spreadsheet” model, so loved by the CFO-s and the Procurement in the large companies, has been backfiring, bringing some organizations to the brink of collapse due to poor decisions to offshore critical technology services almost purely based on illusory price.

The long list of Offshore failed expectations is often downplayed, especially by the companies listed on the stock market, where the quarterly validation seems the only thing that matters. The lack of value creation, user dissatisfaction, brand damage, and technology debt often take many months to surface, but as many companies realize now, eventually they all do.

DevOps & Agile Methodology adoption across all industries has significantly contributed to companies “waking up” to revisiting their outsourcing strategies. The real promise of agility of teams working closely together is not achievable in an Offshore model. At least not without a significant impact on employees' wellbeing by imposing a 12-16 hours working window, resulting in increased turnover rate and burnout incidence.

Between a Rock and a Hard Place

Bringing your technology services back onshore seems to be the obvious solution, easily solving all offshoring issues. Onshore, however, is not a simple alternative, especially if you are a small or medium-sized company.

We are witnessing unprecedented scenarios (due to known reasons, not the subject of this blog) where unaffordable local technology expertise is killing 90%+ of business initiatives. And there is also no guarantee even for the “lucky” 10% of business initiatives being executed due to a massive shortage of local technology expertise. To make matters worse, small and medium-sized companies, budget-wise, simply cannot compete with large ones in the battle for talent.

The Rise of Nearshore

The Nearshore model is gaining significant popularity in Western Europe by combining the best of both models, addressing proximity context (timezone, culture, mindset, language, travel), talent, capacity, and value.

For some small and medium-sized companies, it is sometimes the only viable model allowing business survival.

The aspect that is not so much discussed is the benefits Nearshore brings to local Professional Services companies in Western Europe. As the budgets are shrinking, the smaller and medium-sized Professional Services companies are also losing business, followed by a vicious cycle of expert turnover.

By understanding the market forces, forward-thinking Professional Services companies have focused on establishing partnerships with Nearshore providers, allowing them not only to stall the revenue decline but to start growing faster than ever before. In the process creating strong winning triangle relationships based on creativity, quality, and trust for the years to come.

Nearshoring Salesforce activities with codeSTREETS

At codeSTREETS, we believe in Salesforce as a synonym for connecting a new generation of like-minded people, business owners, consumers, and developers, irrespective of their geographical whereabouts or cultural heritage.

Headquartered in Amsterdam, The Netherlands, we deliver Nearshore services to our clients throughout the EU and UK from our Center of Enablement in Skopje, North Macedonia.

Looking to expand your Salesforce activities abroad, enjoying all the benefits of local teamwork? Let’s have a chat about how codeSTREETS Nearshore Elasticity Services can support your company's growth ambitions.