Benefits of Nearshore or Local Global

Our unique “Nearshore” model or commonly referred to as "Local Global" combines offshore and onshore resources to form an integrated team of software developers, providing significant cost savings across the length of the development project while minimizing delivery risk.

Let's compare the three models to see the value that you will receive from LHP:

The On Shore Model: The On Shore Model is one that we are most familiar with. This model allows for your team to be localized so that communications are high and effective.  There is more accuracy in your projects, but it is at a substantial cost to you and your organization.

The Off Shore Model: The Off Shore Model is one that allows you substantial savings in cost at the expense of accuracy and the convenience of communicating to your team. There are usually boundaries in timezones, lack of verbal communications and lack of the need to physically have your team on site while developing your application.

The Near Shore or Local Global Model: The Nearshore or Local Global Model is one that LHP Software practices.  This model is one where LHP brings offshore talent onshore for months at a time at a much lower hourly wage.  The benefits of this offering is that communication and accuracy is much higher due to teams working together in the same timezone and in an environment that allows for verbal and physical communications. This model gives you the benefit of cost savings along with a higher accuracy rate, saving you further investments in rework due to lack of communications from the Off Shore model.

With our “Nearshore” model, you enjoy the benefits of:

• Cost savings with blended rates (Onshore/Offshore)
• Reduced risk compared to pure offshoring
• Minimum coordination impact due to outsourcing
• Minimum travel required to validate the offshore team
• Face-to-face interaction with the project manager and client manager

Our commitment to integrity and delivery, as well as a guarantee of quality, allows you to engage in outsourcing with LHP in a worry-free manner.

Nearshore – an Ideal Recipe

With a blended workforce of engineers in the U.S. and China, we offer skills, flexibility and pricing competitive with both on-shore and off-shore providers. In addition, it removes the risk and dissatisfaction that typically occur with pure offshore-based outsourced projects.

Extensive Training

Our Nearshore engineering teams develop a cohesive working relationship that is well coordinated and productive. All engineers are trained in the U.S. for a period of up to six months before going back to China for continued development support. While in the U.S., they become fully versed in a customer’s requirements and the development process first-hand so that everything is well coordinated before returning to the China office for implementation and support.  Additional rotation can occur as needed or when new employees are added to the team for longer projects.

Organization

A typical team organization includes one onshore engineer assigned to the customer’s site to provide consistent coordination and a single point of contact to make it easier for the customer to coordinate needs, concerns and issues. A project lead will oversee the delivery of the project at our engineering center in Columbus, Indiana, managing the engineering efforts both onshore and offshore. There is typically another primary point of contact for the offshore team to help delegate and manage the work proceeding in the offshore facility. A normal ratio of offshore to onshore is two-to-one offshore, maximizing the combination of savings and productivity. However, this is flexible and can be adjusted on a case-by-case basis to satisfy a customer’s specific situation and level of comfort.

Not a Compromise, but a Solution

Nearshoring provides a unique offering to address companies’ needs for cost savings while reducing risk and improving the overall effectiveness of the pure offshore outsourcing model. For companies that have markets in both U.S. and China this model can provide engineering support capabilities in the offshore market. Nearshoring can be a wonderful choice for companies that…

...have clearly defined requirements and need outside expertise.

…are looking for cost savings.

…are frustrated by the unpredictability of offshoring.