Nearshoring Internet of Things projects is gaining popularity after the COVID-19 pandemic. This article summarizes the advantages of nearshoring projects in the IoT space.
What is Nearshoring?
Nearshoring is outsourcing business processes or services (in the context of this article – the research and development) to nearby countries, leveraging geographical proximity, cultural similarities, and time zone alignment to enhance collaboration and efficiency.
Nearshoring has been and still is popular for traditional software development: web, cloud, or mobile applications have been successfully nearshored across Europe. This has worked well for both distributed teams and dedicated teams.
However, the IoT projects are often more difficult to outsource – they involve hardware and special equipment, teams might need to travel or legal regulations might be in place.
Cost Efficiency (Without Sacrificing Quality)
One of the primary advantages of nearshoring is the ability to reduce costs – if chosen wisely it could be even without compromising on quality. Nearshore locations often offer competitive labor costs compared to domestic markets. This cost efficiency allows companies to allocate resources more effectively, investing the savings into the project for additional enhancements.
Moreover, nearshore partners typically adhere to high-quality standards due to similar regional regulations and market expectations. This means you receive top-notch services and products that meet or exceed industry standards, ensuring your IoT project is built on a solid foundation.
Access to Specialized Talent
Nearshoring opens doors to a vast pool of additional talent (compared to the domestic market). Often this is also true for specialized talent that might not exist or be difficult to find in the domestic market. Many nearshore regions boast a strong workforce of IoT experts, engineers, and developers. Poland, for example, is well-known for its know-how in the automotive industry. Bulgaria, on the other hand, is gaining traction in the aerospace industry.
Geographical Proximity for Enhanced Collaboration
Proximity matters, especially in projects that involve hardware and equipment, or require tight coordination and quick decision-making. Nearshoring offers the benefit of geographical closeness, which allows for easier travel for face-to-face meetings and site visits. In addition, geographical proximity is often related to cultural proximity, which might be an additional advantage.
Time zone alignment is another significant advantage. Working within similar time zones eases real-time communication, reducing delays and ensuring that any issues are addressed quickly.
Conclusion
Nearshoring combines cost efficiency, access to specialized talent, and enhanced collaboration to provide a compelling solution for outsourcing your IoT projects. By leveraging the advantages of geographical proximity, cultural alignment, and efficient communication, businesses can drive innovation and bring high-quality IoT products to market faster.
Choosing to nearshore your IoT projects is not just a strategic move for cost savings—it’s a smart choice that positions your business for growth, agility, and long-term success in the competitive IoT landscape.