The CTO’s Guide to Nearshore Software Outsourcing

Ross Jackman
Ross Jackman | July 5, 2022

The CTO’s Guide to Nearshore Software Outsourcing

When it comes to launching software products on time with no bugs, managers are faced with the question of whether they should deploy an in-house QA team, crowdsource the entire effort, or outsource software testing to a professional QA service provider. While outsourcing software testing has several benefits like saving cost on training, tools and equipment, the process of finding the right QA partner can prove to be very challenging.

If you’re still on the fence about whether outsourcing software testing is the right option for your business, then you’ve come to the right place. In this blog, we will take an in-depth look into the advantages of outsourcing your QA strategy, and what criteria you should keep in mind when choosing a provider.

Outsourcing Vs In-house Vs Crowdsourced Testing

Before deciding on the best approach for your software testing needs that can be beneficial for your business, let’s take a quick deep dive into the different approaches.

  • Outsourced Testing

    Outsourcing your software testing services can help you to accomplish specialized tasks that would otherwise be too expensive, time-consuming or difficult to complete in-house. Typically, outsourced services offer a wide range of benefits, but there are different outsourcing models, with each one having its own challenges. In order to pick the right option, it’s important to understand the differences.

    There are two types of outsourcing options available: classic outsourcing and crowdsourcing. The former, whether nearshore, or offshore, provides you with an exclusive team that will work from a set remote location and adjust to fit your particular product needs at any time. Crowdsourcing provides companies with a much larger network of testing experts, but they are dispersed globally, and use different platforms and devices for testing that are independent of each other.

  • Crowdsourced Testing

    Crowdsourced testing is a relatively new trend in software testing. It involves hiring a team of globally dispersed testers who can be easily scaled up or scaled down depending on the testing requirements. However, crowdsourcing comes with its own set of challenges. Although the varied experiences and expertise of a globally dispersed team can bring a fresh perspective to product development, both communication channels and management protocols can become very complicated. Moreover, there is no guarantee for data security and confidentiality, as you can never be sure of who is working on your project, making non-disclosure agreements difficult and ineffective.

  • In-house Testing

    Having an in-house team can give you complete control over testing processes. However, creating an effective team in-house is a time consuming process. It requires investments of both time and money to build an effective internal infrastructure. Specialized technical training, and maintaining the latest tools and their licenses can prove to be very cost-intensive, and the overall cost of software testing and QA may exceed the set budget.

    In short, an outsourced software testing service provider can help you to quickly scale up and meet the QA requirements for your product with a staff that is already trained and can handle the extra volume of work to reduce the overall cost of your testing infrastructure.


The Advantages of Software Outsourcing

Outsourcing software testing makes better use of your resources by allowing your core team to focus on other activities and by providing you with a trained team of experts to reduce the overall infrastructure cost.

Outsourcing gives you:

  • Domain Expertise

    Bring in talent with expert knowledge of the tools, technologies, regulations, and protocols of your specific industry.

  • Second Set of Eyes

    Leverage the advantage of fresh eyes on your product’s features or enhancements for thorough quality assurance.

  • Enhanced QA Processes

    If you outsource to a good QA company, you are also leveraging the most up-to-date testing expertise and resources.

  • Cost Efficiencies

    Better target your resources to peak QA and release cycle periods, rather than to ongoing commitments.

  • Increased Productivity

    QA experts get comprehensive results faster by designing optimal testing frameworks, writing more efficient test scripts, and providing better test analysis.

    Both nearshore and offshore software outsourcing bring advantages to your quality requirements and your bottom line. Together, nearshore and offshore solutions may even complement each other in a broader QA strategy.

  • Agility With Resourcing

    Offshore teams work with many clients across different domains using the latest technologies, which equips them with the knowledge and expertise of different industries, software and testing best practices. So, when in need, outsourcing providers can swiftly scale up to complete the deliverables on time.

  • Access to Expert Knowledge

    Offshore companies like QASource have set up their internal expert groups for research and standardization, to ensure that they are always ahead of the technology curve and competition. We also provide this service to our clients, so that they can benefit from the innovations and standardizations brought about by these industry experts.


The Advantages of Nearshore Software Outsourcing Specifically

There are some advantages that are unique to nearshore software outsourcing. Primarily, you get access to all the efficiencies outlined above without having to suffer the high costs and low availability of resources for outsourcing domestically. Nearshore markets have matured to compete with the skills and standards of US QA testing facilities while providing a better ROI.

Mentioned below are some of the advantages of nearshore software outsourcing.

  • Attractive Time Zones

    Outsourcing to a nearshore QA facility means that you never have to take a meeting at 3 am. A destination such as Mexico, for instance, operates in the same time zone as the Central Daylight time zone of US businesses. With maximum time overlap, your core team and your QA team can easily make audio and video calls, connect with each other in real time, and create a seamless Agile development environment.

  • More Personal Interaction

    The relative proximity of a location such as Mexico makes it easier, and more affordable, to undertake on-site visits. Video conferencing has made it possible to meet face-to-face over any distance in real time. But there’s nothing like an in-person tour of your partner’s facilities or a post-meeting get-together to encourage closer working ties and, ultimately, to increase productivity.

  • Cost-Effective Expertise

    It is substantially less expensive to hire, train, and retain resources in locations such as Mexico than it is in the US.

  • Cultural and Professional Familiarity

    The proximity of nearshore testing facilities means there are fewer cultural and linguistic barriers to effective collaboration. Countries in Central and Latin America often produce software for the same markets as US businesses, so there is also common ground on a technical and professional level.

    Nearshore software outsourcing offers a number of advantages over outsourcing to a domestic QA tester. The prospect of moving farther from home and employing offshore software outsourcing in areas such as India and Southeast Asia does reveal some comparative disadvantages to the nearshore option.


The Advantages of Offshore Software Outsourcing Specifically

The difference in terminology is slight, but the impact can be profound between offshore and nearshore QA outsourcing. Nearshore is, typically, considered outsourcing to areas in close geographical proximity: the US and Mexico, for example. By contrast, offshore refers to outsourcing in places on the other side of the globe, such as India or Southeast Asia.

There are pros and cons to both options, and ultimately, the choice will come down to which better suits your business model. And, in fact, they may both work as complementary solutions to various aspects of your QA strategy. Each offers the same resource and productivity advantages over outsourcing within the US, but offshore investment provides the following advantages that nearshore options do not have.

  • A 24-Hour Day

    The increased distance of outsourcing offshore can work in your favor. The near-12-hour time difference between India and the US, for example, means your QA team can conduct testing overnight and present results to your core team in the morning. Such a system can better streamline your productivity, but it also puts more strain on your communication.

  • Established QA Markets

    While nearshore destinations such as Mexico have made great strides in QA testing development, there is no denying that the offshore alternatives have been at it for longer. India has long been a leader in the engineering field and is home to more than 2,000 dedicated colleges that produce 1.5 million graduates each year. Competition in such areas has led to greater diversification, resulting in domain experts in every imaginable industry.

  • Greater Resource Savings

    It is safe to say that any time you outsource outside the US or Canada, you can save significantly on monetary resources. The resource cost differential between India and the US, for instance, can reduce your QA spend by as much as 50%.

    Offshore and nearshore software outsourcing options offer their own unique advantages, but both have emerged as effective alternatives to finding a domestic QA partner.


Complementary Solutions: Nearshore and Offshore Software Outsourcing

Outsourcing your QA process outside the US provides immediate resource and productivity efficiencies. Between the “in-house” feel of a nearshore solution and the around-the-clock working model of an offshore approach, you can customize an ideal QA strategy to meet your business goals. Overall, outsourcing gives you ready access to domain experts when you need them and at a reduced cost.

At QASource, we view nearshore and offshore QA options as complementary. QASource has the facilities to offer you the best of both offshore and nearshore outsourcing solutions. With state-of-the-art facilities in Chandigarh, India, and in Aguascalientes, Mexico, we can help you choose a destination that suits your business and your product. Contact us for a Free Quote, or call +1.925.271.5555 today.


This publication is for informational purposes only, and nothing contained in it should be considered legal advice. We expressly disclaim any warranty or responsibility for damages arising out of this information and encourage you to consult with legal counsel regarding your specific needs. We do not undertake any duty to update previously posted materials.