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Preferred Nearshoring Vendor – 4 Painful Facts of How It’s Wasting Your Time & Money!

May 6, 2021
software developers part of a nearshoring vendor

Nearshore outsourcing comes with tons of advantages. It provides hard-to-find skills and allows you to upscale or downscale with ease. Besides, you can easily collaborate and communicate with your nearshore partner without the challenges of time-zone differences, language barrier, or cultural inconsistencies. Do you have a preferred nearshoring vendor? You have probably worked with them for some time now, but this could be working against you. Here are 4 painful facts that your preferred nearshoring vendor is wasting your time and money:

1. They Are Slow and Don’t Care (You Know It!)

Your vendor can complete your assignments faster, but they are not. You probably know this because they were doing so when you began working with them. Then, they slowed down along the way. They may also be slow at putting together the right team to execute your project.

This could be because they are also working for other clients. Could it be that the other clients are pushy and you are not? If that is the case, they will continue bypassing your assignments to complete other projects with strict timelines.

When your nearshore software outsourcing vendor misses your deadlines frequently, you lose time and money because you delay launching your products. This makes you miss the opportunity to start earning from your new software, and the time you would begin working on a new software development project.

2. Your Preferred Nearshore Vendor Knows They Are Your Main (And Only) Option

Your vendor probably knows you rely totally on them to work on your software development projects. You may have settled on them after struggling to find the right skills for a while. When you finally did, you are not ready to look elsewhere.

Many companies find themselves in this situation considering the limited supply of top talent from nearshore software developers’ teams. When your vendors know they are indispensable due to a limited supply of the skills they offer, they may not be keen on exhibiting good work ethics.

Other clients may be relying on the same vendor for their nearshore outsourcing. If the vendor has lined up several projects, chances are your project will get the least attention since the nearshore vendor knows you will not withdraw the assignment.

You may want the project done in a particular way, but the vendor may make you change the design to a less complicated design that will take less time and resources to execute. This may happen if they are in charge of procuring the resources and you have a pay-per-project agreement.

Do those changes serve your interests or the vendor’s interest? But as long you take your preferred vendor’s words as truth, they will convince you to make favorable changes for them. By the time you realize that their suggestions are made for their selfish gains, you will have lost the opportunity to develop what you originally had in mind.

3. If You Are Lucky, They Will Send You Some Talent From Time to Time. (Who Cares?)

Your preferred nearshoring vendor probably has access to high-quality talent that they reserve for their high-end clients. Are you one of them? Maybe, maybe not. The vendor decides the quality of talent to use on each project. If you are lucky, they will send your some top talent.

But chances are they reserve the top talent for projects they want to use to create an impression on the new better-paying clients.

While this may not compromise the quality of your project, it denies you the advantage of working with better talent than what you are used to. New talent injects fresh ideas. But there is stiff competition for top talent.

Preferred vendors know this too well and use the talent sparingly on the projects with the highest ROI for them. So, don’t imagine that because they are your preferred vendor they will spoil you with the best opportunities. They will do so occasionally, but in most cases, those talents will be used as bait for new, better-paying, or clients with alternative vendors.

4. They Are Not up to Help You (But to Make Money)

a nearshoring vendor working late at night.
Shot of a young woman working on code during a late night at work.

Your preferred nearshore vendor is out to make money. They set up their nearshoring agency to make money, not help clients. They make their decisions based on the profit an engagement will make for them.

You may wonder how that affects you, but it does. The vendors use that to decide the number of people to work on your project, which may determine how fast they execute your project. Besides, they also use the same consideration to decide the persons to work on your project.

If your preferred vendor considers you as a well-paying client, they use top talent that requires better compensation. But if you are not on their list of high-end or well-paying clients, what will stop them from using low-tier talent that demands a lower pay, leaving them with their fair share of profits from your project?

This may affect the quality of work and the time they take to execute your orders. However, as long as their books are balancing well and their profit margins look good, quality may not concern them.

Learn More About Using a Nearshore Vendor

You may be looking to develop the best product in your industry. Even if your nearshore vendor can work on the project to help you meet that objective, they will also be thinking about what is in it for them. They may withhold some resources, including top talent if using them will reduce their profit margins.

What does that tell you? Be ready to pay for the best nearshoring software development services and work with the best nearshore staff augmentation company like ParallelStaff.

Nearshore staff augmentation is still a significant way of acquiring software development talent. It will provide the talent you can communicate and collaborate with faster since you will not experience the challenges caused by the language barrier, cultural inconsistencies, and time differences.

However, relying on a preferred vendor may waste time and money. Be on the lookout for better vendors like ParallelStaff who may give you better terms, a better quality of work, and faster timelines.

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