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NEARSHORING OR IN-HOUSE TEAM

In-house team

Cons

  • Difficult to find people
  • Salaries
  • Payroll taxes
  • Training costs
  • Accounting

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  • Vacation
  • Sick leave
  • Employee retention
  • Office expenses

The development process is under control. Therefore, a company is able to create and implement its own guidance and rules. Direct and quick business to development communication can be easily established.
 
As a result, the team is deeply involved in particular business features and aligns its work with the overall strategy. The project code is kept within the company with no third-party access

Pros

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Nearshoring

+

Pros

- ⁠One all-inclusive fixed rate (reduced operational and recruitment costs)

- Office facilities, HR management, and other items are included in the price without any additional costs.

- Proven expertise

- Nearshoring countries offer a large amount of IT resources with highly educated and trained computer science specialists.

- Fast time2market

- The streamlined and highly adaptive development process accelerates your move towards the target market.

- Scalable development

- A nearshore contractor can handle a client’s business growth and provide additional employees, facilities, and infrastructure immediately.

- Flexibility to market changes

- Located in the same region, nearshoring team reacts quickly to the market situation and is easy to reach.

- Reliable labor legislation and salary

- Employment issues are handled by labor law consultants of a nearshoring company,  based on the current legal regulations.

- Competency risk:complex skillsets are required to satisfy the project objective.
- Communication gaps:distant location leads to team fragmentation and weakened team ties.
- Business gaps: the nearshoring team might be aiming at a process, not at business goals.

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Cons

A hybrid approach 

Most widely used development model in startup companies today. 

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