Are Nearshore Software Companies reduced to Nearshore Recruitment Agents due to WFH?

Mihai-Daniel Popa
4 min readJan 25, 2022

Before the pandemic, selecting a nearshore software company highly relied on Request For Information exercises (RFI), client visits, nearshore office security measures, methodology audits, etc. Client companies would visit providers to get a first-hand impression of their nearshore providers.

With the pandemic continuing to impact our lives in far fetched ways, the way of choosing nearshore partners has changed.

The Nature of Changes

1. People, not projects

Not longer than 3 years ago, companies were looking for capable nearshore companies to take on projects from scratch or salvage existing projects.

Now, the entire focus is on skilled nearshore developers, whom these nearshore companies can bring to the table. Little attention is paid to how nearshore companies can complete projects, integrate methodologies and take responsibility for what they deliver.

2. Direct Nearshore Hiring (End-client or Onshore Agencies)

When everyone works from home, it makes little difference whether they are based in Romania, France or the UK. Many end-clients rely on their internal recruitment departments or incumbent HR Agencies to reach out to nearshore developers directly, just as they did for onsite talent.

Was it good? Well, it depends:

· Some of them got through to very skilled engineers, and paid rates above the local market, but with reasonable success.

· Some of them reached job hoppers, who left them in the middle of the work to be done, for a better rate elsewhere.

· Some others reached unverified freelancers, with cases of work being outsourced on by these freelanceers to very junior people

· Some other were unable to reach proper agreements with nearshore engineers, due to lack of communication, delays or lack of trust.

3. Nearshore Software Companies become Nearshore Recruitment Agents

Some of the end-clients decided that the only trustworthy agents to employ for their nearshore recruitment efforts are nearshore software companies (in Romania, Poland, Bulgaria, Czech or otherwhere).

But why?

· Nearshore software companies actually know and understand their local markets. Unlike the average onshore, next-door recruitment agency in Belgium, The UK, Netherlands, etc, nearshore software companies in Romania, Poland, etc. have actually been working with local engineers for decades. They know them, they keep in close touch with their evolution and desires.

· Nearshore software companies can provide nearshore engineers with a wide range of jobs and projects. Programmers can move between them, when such change is required, without changing work environment or employment.

· Assembling a larger body of engineers locally across multiple projects enables nearshore software companies to provide better benefits — e.g. group health insurance, gym, massage, tech courses — which are very difficult to access individually.

· Nearshore software companies take it upon themselves and their reputation that complete confidentiality and non-competition are ensured

The Miss-Outs. Why Recruitment is but a part of Nearshore

· Ready-to-go teams. When projects end, entire functional teams might become available with nearshore software companies. If vetted individually by clients, they may or may not end up together again. Team communication and established channels might be lost in the case of them being assigned amongst different projects.

· Internal procedures and methodologies. Nearshore companies invest a lot in training their staff. There is cross-team communication, team problem-solving, pair-programming, recurring agile training. Often, nearshore companies’ approach to Agile is better than what end clients use internally.

· Commitment to delivery. When an entire project is entrusted to a nearshore software company, they will take on responsibility for its completion and delivery. If individual engineers are requested of such companies, they will only be responsible for providing qualified engineers, who show up for work and fulfil their shift.

Conclusion

The nearshore software companies may have merely been reduced to HR today as the global pandemic continues and WFH becomes a norm, erasing geographical boundaries.

You might rely on nearshore partners just for resources, but you’d be missing out on all the other benefits that a reputable nearshore software company can provide. With today’s abundance of technological resources, you can choose either.

dotNear is an established nearshore software company in Romania and can help with efforts, both in attracting the best technical, English-savvy developers and in completing projects from scratch. An all-round, AI-powered recruitment platform helps us minimize nearshore recruitment cycles and make recruiting nearshore talent with us a breeze. However, there is more to what we do. With a proven distributed Agile set of processes in place, we can help you start or rescue projects, with assured delivery. Contact us and let’s talk about how we can help.

*This article first appeared on dotNear’s nearshore blog on Jan 19, 2022.

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Mihai-Daniel Popa
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Bucharest-based executive, running a nearshore technology business.