Nearsurance

Introduction

One of the major breakthroughs that technology granted to business was the ability to outsource projects or even whole departments. Internal human resources and knowledge can be limited and slow to expand. You might not be able to grow your team because of external factors - for example, if the local job market is very competitive and it’s hard for you to find decent specialists. In other cases, the reasons are coming from within and are more pragmatic - e.g., you need a project delivered, but you have scarce financing. In this case you choose a cost-efficient solution that serves the purpose - you hire an external partner. Whatever the case may be, there is only one truth: outsourcing allowed businesses to bring out products faster and cater to consumers better. It comes as no surprise, that 82% of the largest companies in Western Europe and North America are currently working with external service suppliers, or have done so recently.

The destination matters

Since outsourcing initially originated as cost cutting practice, it didn’t matter where your subcontractor was, as long as they could do the job for less time and money, than it would have cost locally. This was perfect for the Western World as it allowed businesses to outsource various white collar jobs to emerging economies all over the world, regardless of their proximity. This is how the foundations of offshoring were built.

Offshoring proved to work for some companies, however it did have its cons and drawbacks - mostly due to the big distance and time gaps between clients and suppliers. Seizing the opportunity, countries that are territorially closer to leading economic and business forces, also started offering BPO services. A new model, called nearshoring emerged - and today, it’s the preferred choice for leading Western companies. It’s way easier to do conference calls when the time zone difference is no more than two or three hours; and it’s a lot more cost effective to do business trips within a closer reach, using low cost airlines. Of course, political and economic factors also matter. For European businesses, it’s best to outsource within the EU range, so they can take advantage of 2the existing regulations for things like work and travel, payments and VAT processing.

One of the top nearshoring locations in Europe is Bulgaria. Its proximity to UK, Netherlands, Germany and other leading business hubs, complemented by a well-educated and qualified workforce (with relatively low labor costs) makes Bulgaria a perfect partner for service delivery. That is why Strypes has also chosen to create and grow an office in Bulgaria. We already have over 180 employees specializing in different sectors of the IT and software development domain.

We leveraged nearshoring and made it better

During our years of experience with both enterprise clients and SMEs, we noticed that even though it’s a good business model, nearshoring also has its faults. Picking a closer location to outsource work doesn’t really get rid of all challenges and risks created by remote partnerships. There’s always a chance to experience project management faults, communication gaps, cultural differences, etc.

To tackle these obstacles, we developed our own outsourcing framework that builds on the existing benefits of nearshoring, by combining remote partnership with on-site process quality assurance. We called this model “nearsurance” and we believe that it will change outsourcing for good. Nearsurance is especially useful for companies that are seeking to outsource software development projects, since it’s very welcoming to Agile project management methodologies.

How does nearsurance work?

Nearsurance is a term that merges “nearshoring” with “process quality assurance”. The aim of the nearsurance model is to combine remote service delivery with onsite project setup and coordination, and thus provide maximum comfort and security for the client. Here are some of the benefits:

A Strypes representative in your own office

TTo build a strong and long-lasting relationship with clients, Strypes established the so called “Strypes Front Office” (FO). Once a new project is requested, the FO integrates an Outsourcing Manager (OM) within the client organization. That person functions as an intermediate or a “bridge” between both companies, to help setup an efficient outsourcing partnership.

According to client needs, the OM can have either a technical project manager or a software architect profile. In any case, the OM role is mostly tasked with account management and project setup in the beginning. We believe that having a representative on-site makes a huge difference. They’re easy to reach and they know Strypes from the inside, so that they can handle any questions or escalations.

Flexibility

We understand that companies might not need an external partner for their projects all the time. Despite that, it’s convenient to know that you can count on a company with this possibility. Anytime you have a problem you need solved, you can scale externally by switching Strypes’ teams on and off - we call this “Software Development-as-a-Service”. Depending on the size and complexity of your projects, you could choose teams with different tech expertise, or even scale your organization with more than one nearsurance team.

Only pay for what is delivered and approved

The nearsurance model is client-centered in all its aspects, and billing doesn’t stray away from this. You will be billed monthly, but you will only pay for the production that has been delivered and accepted by your team. Anything that’s still in progress will be invoiced to you once it’s finished - you don’t pay for ongoing work (unless that is our agreement). Transparency is key for us.

You don’t fully delegate control over your project

We don’t take on the product owner function, as product owners need to be subject-domain experts who understand the industry and can think strategically about product development. The client organization chooses their own product owner, however that person works in tight-knit collaboration with the outsourcing manager and the PM from Strypes.

Projects are managed using agile methodology

We manage all client projects using an Agile approach. It allows us to plan ahead and develop deliverables in preset cycles, so you can know what to expect from us (and when). Agile project management includes daily team catch-ups, which allow us to monitor our progress, isolate issues and iterate quickly.


Conclusion

We realize the complexity of the decision how to delegate or outsource an important project. Based on our expertise, we strongly recommend considering nearsurance, as a stress-free model that provides you with more control, transparency and flexibility. Furthermore we promise you that we will tailor-make the nearsurance setup to best fit your business needs. We look forward to working with you!


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