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Nearshoring to iPhone Application Development Services and the Demerits

Nearshoring is categorically similar to offshoring but it means outsourcing your project to a nearby country or region.For example, if a business in Norway outsources its project to Sweden it would be called nearshoring. Nearshoring does have some benefits especially for the manufacturing process as nearshoring brings the production line near to the consumption point but for iPhone application development its demerits outweigh the advantages.Here are the demerits that make nearshoring a less preferred option for iPhone Application development services.

Higher Cost

Nearshoring a project will not provide the cost benefits as compared to offshoring a project.If a business in Toronto, Canada is nearshoring its app development project to iPhone application development services in Detroit, USA then there will be no significant cost advantages.As the iPhone application development cost per hour in western countries would vary from 100 to 250 US dollars per hour whereas the cost of development in India would be as low as 15-25 US dollars per hour.

Fewer options

Nearshoring an iPhone application development project will offer you very few providers to choose from.You may or may not find the right developers which match your business requirement.With fewer options to choose from, you may have to compromise on the skill set required for the project.The lesser the number of providers will make the market less competitive and thereby less customer oriented.

Business Environment

The upsurge in nearshoring brought a plethora of opportunities to Mexico as it received major projects from its rich neighbor the USA.The IT giants such as IBM, Accenture, Genpact and HP invested heavily in Mexico’s IT market. Later the IT majors faced a challenge from an unstable business environment in Mexico due to drug cartel violence.Mexico is competing with India to get a major chunk of IT business from the US,but the disruption caused due to drug-related violence is a major roadblock.

Unskilled Workforce

Nearshoring may not always provide you access to a skilled workforce.The Western European countries such as France,Netherlands, and Wales may nearshore its projects to Eastern European countries such as Bulgaria and Romania to get a cost comparable to India or China but there is a lag in product quality.The lag in the quality of mobile application developed in Eastern Europe is due to shortage of skilled and experienced workforce which is readily available in India or China.

Conclusion

Although nearshoring gives advantages of working in the same time zone with fewer cultural differences but the business advantages of outsourcing still outweighs nearshoring an iPhone application development project.

Also read: Pros and Cons of Outsourcing Web Application Development