Curated by: Sergio A. Martínez

Opting to collaborate with a Nearshore development team is always a great idea, allowing your organization to reach a talented pool of developers within the same time zone, and whose expertise is ready to help you reach your best possible outcome without sacrificing communication or compromising quality in any way. Latin America, for example, boasts some of the more skilled and knowledgeable developers in the world, so for any US-based company that wants to augment their dev teams, a Nearshore is the best solution.


However, how to make sure you are choosing the best company to work with? Are there any red flags that your organization should watch out for before making a decision that will make or break your project? As it happens, when you’re looking to hire a software development company, there are a few warning signs that you should be aware of, in order to guarantee that you are choosing the correct Nearshore company or team to collaborate with. So, when approaching a potential partner, ask yourself…

1. What does their online presence look like?

It’s no secret that first impressions are important; when you meet someone for the first time, you form an impression of them based on their appearance, their demeanor, and the way they carry themselves. The same is true for businesses. 

 When you’re considering working with any development company, one of the first things you’ll do is research them online. Their website, their social media presence, and the way they communicate with potential clients all play a role in shaping your opinion of them. And in today’s competitive market, it’s more important than ever for software development companies to make a good impression online. A well-designed website and active social media accounts show that a company is modern, relevant, and engaged with its potential clients, as well as showing that the company is serious about its business and that it has the resources to invest in its online presence. By contrast, a company with a poorly designed website or no social media presence sends the message that, at best, it’s out of touch with the realities of modern businesses. First impressions still matter, so always be wary of any company that doesn’t seem to care about their online look.

2. Other people’s opinions are always useful

If you’re thinking about hiring an external development team, it’s always a good idea to get some input from other people. After all, you want to make sure that you’re making the best possible decision, and there are a few different ways to go about this. You can ask people you know who have used Nearshore software development companies in the past for their recommendations or read online reviews and testimonials to get a sense of what other people’s experiences have been like. You can even reach out to the companies themselves and ask for references. By taking the time to do your research, you’ll be much more likely to end up working with a company that’s a good fit for your needs.

3. Look closely at their business processes

Going Nearshore is a big decision. You want to find a company that will be able to meet your needs and deliver on its promises, so pay attention to these warning signs and you’ll be more likely to hire a great software development company. With a clear understanding of what you’re getting offered, you can feel confident that you’re making the best choice for your business:

  • Fixed-bid pricing. With an external software development company, there are a few different pricing models to consider. One of the most popular options is fixed bid pricing. This model means that the company quotes a single price for the entire project, regardless of how long it actually takes to complete, which may seem like a good deal at first glance but has some potential drawbacks to be aware of. First of all, fixed bid pricing can incentivize companies to lowball their initial quote in order to win your business, and as a result, you may end up paying more in the long run as the company tries to make up for their mistake. Additionally, fixed bid pricing can lead to scope creep when a company tries to add extra features or requirements that were not originally included in the project, leading to higher costs and delays. In general, it’s best to avoid fixed bid pricing when choosing a software development partner, instead negotiating an hourly, monthly, or even yearly rate so that you can be sure you’re getting what you pay for.

  • Suspicious estimates. Accurate estimates are important. A good estimate will give you a realistic idea of what to expect in terms of cost, timeline, and scope. It will also help you identify any potential risks during development, so this information is essential in making an informed decision. Therefore, when you’re talking to a potential software development company, be sure to ask lots of questions about their process and their experience; if they can’t give you straight answers, that’s another red flag, and too good to be true estimates are cause for concern, as they often lead to cost overruns and schedule delays. When reviewing estimates, always ask for clarification if anything seems unrealistic.

  • Unclear (or absent) feedback loops. Software development is a complex and error-prone process. Even with the best planning and management, things can go wrong, which is why a feedback loop is an important part of any development process, and critical when working with an external team. Without a clear feedback loop in place, it can be difficult to manage expectations, track progress, and identify potential problems. In addition, a feedback loop helps to create a sense of accountability and ensures that issues are addressed promptly. As a result, taking the time to establish a clear feedback loop process with your external partner is always worth the investment, and if the company doesn’t have a clear and established process to receive and implement it into the project, a negative outcome is all but guaranteed at the end.

Nearshore the right way

Nearshore the right way

In Nearshore development, working with the right company is essential to guarantee the best outcome. The collaboration and communication between the client and the development team are critical, as well as the skills and expertise to meet your specific needs”, explains Luis Aburto, CEO and Co-Founder of Scio. “In addition, the right Nearshore development company will have a deep understanding of the local market, which is essential for success. With the right partner, you can be confident that your development project will always reach your goals.

So, when it comes to Nearshore software development, working with the right partner ensures a successful outcome if you look for the right “green flags” that a good Nearshore development company offers, guaranteeing the best result:

  • First, collaboration is key. A good partner should work closely with you to understand your specific needs and goals, and then develop a customized plan to ensure that those needs are met. Collaboration ensures that everyone is on the same page and that the final product meets your expectations.
  • Second, communication is key. The right company will keep you up to date on the project’s progress and address any concerns you may have along the way, understanding that effective communication is essential to maintaining a good working relationship.
  • Finally, skill is key. A Nearshore company looking to improve your project will have a team of skilled professionals who are experts in their field. They’ll be able to handle every aspect of the project, from start to finish, ensuring a high-quality final product.

In short, while there is no definitive answer to choosing the right software development partner, due diligence and being wary of companies that make unrealistic promises, seem unprofessional or secretive, or do not have a good reputation in the industry is still the best strategy. By keeping an eye out for these warning signs, you can find the right partner to help you achieve your business goals, choosing a company that has the experience, communicates effectively, and has the best-skilled professionals. Doing so will always guarantee the best outcome for your project.

The Key Takeaways

  • Nearshore augmentation is the best solution if you want to ensure your project has all the talent, skill, and collaboration necessary to make it a success.
  • There are many options out there, so knowing how to look for red flags when choosing a partner is critical to ensure success.
  • Among those red flags, getting unrealistic promises, unclear business practices and a lacking online presence are always indicators of a dubious partner in development.
  • On the other hand, a transparent company with clear communication and collaboration processes like the ones Scio offers can guarantee a smooth development experience, and thus, the positive outcome your organization is seeking.

Scio is an established Nearshore software development company based in Mexico that specializes in providing high-quality, cost-effective technologies for pioneering tech companies. We have been building and mentoring teams of engineers since 2003 and our experience gives us access not only to the knowledge but also the expertise needed when tackling any project. Get started today by contacting us about your project needs – We have teams available to help you achieve your business goals. Get in contact today!