Thriving through Recession: How Nearshore Software Partnerships are helping companies align goals with budget

Some pain.” Those were the words used by Federal Reserve Chair Jerome Powell to describe what the fight against inflation would bring for households and companies in the United States. In other words: a recession with inflation -a phenomenon known as stagflation- is on the way. Actually, after two quarters of negative growth in the US, some claim recession is already here. And as a winter that will be marked by the energy crisis is coming to Europe and a real estate bubble with an uncertain outcome hangs over the powerful yet fragile Chinese economy, we are definitely looking at a bumpy boreal winter ahead. Nevertheless, things should not necessarily look all that bleak. Disrupting events like this one usually offer opportunities for new players and new paradigms to emerge. 

Yes: crisis and opportunity. Probably one of the most overused clichés in history. Yet, as Jorge Luis Borges once wisely said, clichés are not just arbitrary combinations of words but rather reveal true affinities between things. So the question we need to face today is how our answer to the effects of the upcoming recession can open new business opportunities for us, as we develop those tools, strategies, processes, and partnerships that will help us not only adapt to the new situation but even enhance our competitiveness and our ability to thrive and grow even in the turmoil of recession.

Nearshore Software Partnerships

Recession in the Digital Era and the Nearshore Paradigm

Due to the combination of high costs associated with tech features and skills and the growing need for innovation and digitalization, this recession poses a big challenge for US companies. And not only for startups, but for big and mid-size companies as well. In this context, partnering with nearshore software companies -a strategy that has been growing for years now- is arousing even more interest among US companies, since it allows them to keep counting on those high-quality software products and services that only top-notch talent can deliver, while at the same time helping them with the cost-saving mindset that recession inevitably forces.

As opposed to the traditional offshoring model -involving software companies from distant regions of the world-, nearshoring partnerships with countries from Latin America dodge those communication difficulties caused by cultural gaps and significant time zone differences. Trustworthy relationships with nearshoring partners allow companies to build long-term relationships, thus freeing valuable resources to work on whatever each company does best.

Also, as it is well known, flexibility and adaptability are two of the most critical features in a constantly changing market, and one of the huge advantages of partnering with outsourced nearshore development teams is that they offer established companies and startups the possibility of assigning certain profiles according to temporary demands, then reallocate them once their skills are no longer needed for a specific project.

But most important of all is that, since Latin American countries that stand out for their tech hubs share a similar mindset with the US, nearshoring partnerships can be simultaneously flexible and solid. Because long-term, productive partnerships are one of the keys to thriving in uncertain times like the ones that are coming.

Nearshore Software Partnerships

Nearshore: An Effective Strategy for a time of Great Transformation 

A few days before Jerome Powell’s speech on inflation and the upcoming recession, President Macron gave a speech in which he signaled the end of “the age of abundance” for Europe and spoke about “la grande bascule”: the fact that we are currently in the midst of a great transformation. 

So it is clear that the most important leaders in the world agree that our global economy is going through major challenges that are likely to last for a while. Yet, as history plainly shows, humanity has always found a way to keep growing and thriving after even the hardest of crises. 

But how were we able to achieve this over and over? By innovating, trying new strategies, thinking outside of the box, and going beyond the boundaries imposed by our times. The rise of the nearshore software paradigm is a virtuous example of the flexible and innovative mindset that the times like this demand from us.

To learn more about the latest tech trends, keep reading our blog.

 

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