Offshore app development is a popular choice for companies looking to take advantage of lower labor costs and access to a global talent pool. However, despite the potential benefits, these projects often fail to meet expectations. According to a 2020 report by the Project Management Institute (PMI), the global average for project failure is 17%. When it comes to outsourced software projects, the success rate is even lower. The Standish Group, a research firm that specializes in IT project management, found that only 29% of outsourced IT projects are successful.
In this blog post, we'll explore the common causes of failure in offshore development projects and examine how nearshore development can help increase the odds of success. We'll discuss the benefits of nearshore development, including:
- Closer proximity and easier communication
- Shared cultural values and understanding
- Increased collaboration and accountability
- Greater flexibility and scalability.
We'll also provide tips and strategies for achieving success with nearshore development, including:
- Identifying and clearly communicating goals and expectations
- Building a strong, dedicated team
- Prioritizing transparency and open communication
- Regularly reviewing and adjusting your approach as needed.
Common causes of failure in offshore development projects
As we previously mentioned, offshore development projects often fail to meet expectations, with the global average for project failure being 17% according to the 2020 PMI report. One of the main reasons for this is due to a variety of factors that can make offshore development projects challenging to manage. Some of the most common causes of failure in offshore development projects include:
- Cultural and communication barriers: Different cultural backgrounds can lead to misunderstandings and miscommunication, leading to delays and missed deadlines.
- Time zone differences: Coordinating work across multiple time zones can be difficult, making it challenging to schedule meetings and resolve issues in a timely manner, leading to delays and missed deadlines.
- Lack of transparency and accountability: Maintaining transparency and holding team members accountable for their work can be difficult, leading to missed deadlines, quality issues, and other problems.
- Difficulty in building trust and strong relationships: Building trust and strong relationships is essential for the success of any project. This can be difficult to establish when working with an offshore team, leading to a lack of cohesion and poor project outcomes.
- Follow the sun model drawbacks: In the follow the sun model, teams take turns working on the same project, passing it along as the sun moves around the world. This can lead to a lack of collaboration, as team members may not have the opportunity to work together. This can also lead to a lack of continuity and increased risk of errors.
By understanding these common causes of failure in offshore development projects, companies can take steps to mitigate these risks and increase the odds of success. Nearshore development can be a solution to neutralize those problems and increase the success rate of the project
The benefits of nearshore development
One potential solution to the challenges of offshore development is nearshore development. Nearshore development involves working with teams that are located in countries that are geographically close and share similar cultural and business practices. Some of the benefits of nearshore development include:
- Closer proximity and easier communication: Nearshore development allows for easier communication and coordination between team members, reducing the potential for misunderstandings and miscommunication.
- Shared cultural values and understanding: Working with a team that shares similar cultural values and understanding can help to reduce the potential for cultural misunderstandings and miscommunication.
- Improved team dynamics: Nearshore development allows team members to work together more closely and easily, fostering an environment of collaboration and mutual accountability.
- Greater flexibility and scalability: Nearshore development can provide greater flexibility and scalability, as teams are able to work together more easily and respond more quickly to changing project requirements.
- Share the sun model advantages: Nearshore development also allows to use the share the sun model, where team members from different time zones can collaborate and work on the same project, taking advantage of the daylight hours in different parts of the world, this leads to increased collaboration, and less delays.
Overall, nearshore development can be an effective solution for companies looking to reduce the risks and increase the odds of success. By considering nearshore development, companies can find a team that shares similar cultural values and is geographically close, which can lead to a successful project.
How to increase your odds of success with nearshore development
Now that we've discussed some of the benefits of nearshore development, let's take a look at some specific strategies for increasing your odds of success with this approach.
- Identify and clearly communicate your goals and expectations: One of the most important things you can do when working with a nearshore team is to clearly identify and communicate your project goals and expectations. This will help to ensure that everyone is on the same page and working towards the same objectives.
- Partner with a company that has skilled team members and invests in training: Another key strategy for success is to find a nearshore company that already has skilled team members and invests in training and professional development. This way you can ensure that your team is well-equipped to handle your project and you don't have to worry about investing in training.
- Prioritize transparency and open communication: Transparent and open communication is key to the success of any project. Make sure your team members are aware of what is expected of them, what the status of the project is, and what any roadblocks or issues are.
- Regularly review and adjust your approach as needed: Finally, it's important to regularly review and adjust your approach as needed. This may involve modifying your project goals or timelines, changing the composition of your team, or adjusting your communication and collaboration strategies.
By following these strategies and taking a flexible, adaptive approach to nearshore development, you can increase your odds of success and deliver a successful project.
In conclusion, nearshore development can be a great alternative to traditional offshore development. It offers many benefits such as better communication, shared cultural values, and improved team dynamics which can lead to a higher success rate for your project. When looking to partner with a nearshore development team, it is important to find a company that has skilled team members and invests in training. By following these tips and strategies, companies can successfully navigate the challenges of offshore app development and deliver a successful project.
To learn more about nearshore application development, download our free guide, The Nearshore Solution: How to Get U.S. App Development at Around Half the Price. It provides valuable insights on how to save money and get the best results with nearshore app development. Don't miss this opportunity to optimize your app development process.