Nearshore Outsourcing

IT outsourcing has proven to be an effective way for companies to reduce the cost of custom software development. However, outsourcing to countries such as India introduces a lot of risk that may not be worth the rewards. An alternative is emerging as viable alternative: nearshore outsourcing. In particular, outsourcing to Canada.

Neil McAllister of New Architect Magazine (now Dr. Dobb's Portal) writes, "While outsourcing to Canada can fulfill the top objective of most outsourcing engagements-reduced cost-it can also, at the same time, eliminate many of the difficulties associated with offshore outsourcing. Just for starters, language communication between U.S. and Canadian nationals is virtually effortless. Most of Canada occupies the same time zones as the United States. And travel is generally much easier, should you want to inspect your vendors' sites."

"The passage of NAFTA virtually eliminated any government-imposed barriers to outsourcing in Canada, and the Canadian government's tax policies are favorable to hi-tech businesses."

So in brief, outsourcing your project to Canada can bring about a savings of 25% to 30% with almost none of the risks associated with offshore outsourcing.