WhitakerIT Announces Near-Shore Solutions

WhitakerIT is excited to announce our near-shore outsourcing solutions. We now provide near-shore outsourcing solutions with experienced, dedicated teams and specialize in Software Development, Quality Assurance and Technical Support services.

WhitakerIT also offers full project delivery services with architecture and project management provided on-site or in Costa Rica, as well as development and quality assurance delivered from Costa Rica. Customers enjoy the ability to build a team and scale it up or down with project demand.

Near-Shore Economics- Why It Makes Sense to Keep Outsourcing Close to Home

There are two basic outsourcing models when it comes to lowering costs – Offshore and Near-shore.
Many companies compare the two models and fail to realize that the Near-shore model is vastly superior to the Offshore model for team based development where the outsourced team works interactively with a core internal team. A common problem is that most companies just look at the rates being charged for each resource and forget to take into account the inherently lower productivity with offshore resources.

Based on extensive experience and previous project data, a team of 5 Offshore developers of varied skills could at best reach 60% productivity as compared to the company’s internal team. In a Near-shore model customers are finding they can achieve as high as 90% productivity. The difference is due to the fact that developers from both teams (internal and outsourced) can interact in real time (over IM, phone or video conference), and can travel to each other’s location with relatively minimum expenditure. That leads to a better understanding of the business and the problems being solved, and ultimately results in creating higher quality products which do not require rework.

From a resource rate perspective, the blended rate for the same 5 developers in India will cost about $18 to $22 per hour while the resources in Costa Rica would cost about $22 to $26. Taking productivity into consideration, the equivalent rates for India and Costa Rica can be calculated as follows:

As is evident from above, the effective cost in Costa Rica is 18% to 27% lower than India. Added to that is the fact that Costa Rica is country that most of your staff would have no problem visiting!