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What makes nearshore delivery a rightshore one?

Posted on: March 7, 2019

By Mike Randall, CEO @ Ricston

I have become increasingly aware of an interesting trend in our business while reviewing core KPIs in relation to the company’s annual reporting, and this trend is a significant increase in the use of our nearshore services. On further investigation as this piqued by my interest and I wanted to further quantify this shift; as being in the industry for a while, I’ve seen a tendency for a preference towards onsite delivery, especially in relation to our clients in the UK.

A bit more digging and analysis showed that we are saving over 25 euro per hour (so 100 euro per day) for our clients with a hybrid delivery model. At first glance, it doesn’t seem much but if to consider that last year we’ve delivered around 23,000 nearshore hours, that adds up to pretty impressive ~575k euro in costs savings for our clients.

So my first thought was “no wonder we are experiencing growing demand for nearshore services!”, but if I stop and think about it – companies would save even more by going to offshore Systems Integrators, hence the driving force can’t be just cost by itself.

Indeed, conversations I am having with prospects and clients always go back to the quality of delivery and alignment with the business. So much so, that in the last year alone, we’ve been engaged for several project recovery activities in replacing existing remote teams and have seen first hand what does happen when the remote team doesn’t have a “big picture” in mind, or the behaviour of the local team in working with the remote team does not change to compensate. With the push towards the use of agile and continuous delivery models it is critical that teams are in complete sync with one another and the business. So what makes nearshore delivery a rightshore?

Our recipe for successful nearshore delivery has at its heart 4 main ingredients:

  • Core ‘local’ team
  • Governance
  • Communication
  • Motivation

We look to establish a ‘core’ team at the right location with a customer, as this ensures continuous alignment with objectives and changes while providing consistency in quality but also offers continuity in resource which then allows Ricston to scale up or down based on the customer project delivery demands while ensuring adherence to the specific project needs and consistency in results.

It is critical that a core team is established first since that helps to develop the working practices, establish the guidelines and governance model from day one. The central core manage the ramp up and down to ensure the work adheres to the established practices and quality control is maintained. The core team is typically staffed between Ricston and the customer.

We also strive to perfect our methods of communication to virtually minimise the distance between team members. This is done by following internal processes and extending them to our client’s team. Such practices would include:

  • Daily stand-ups
  • Weekly status reports
  • Open online conferencing rooms
  • Chatops (Slack)
  • Integrated task & time tracking tools

In my view, our hybrid model and excellence in nearshore delivery is a win-win for all parties, while we are able to source a project between our 3 European offices – that gives a level of flexibility to accommodate other business priorities.

For instance, we are able to schedule personal development time for our consultants to brush up on newly acquired skills, focus on emerging technologies, or complete certifications. Moreover personal and career development plans are aligned with projects’ requirements and that contributes greatly to overall team motivation, because people know that while working towards clients’ goals, they also hit their own.

In a nutshell –  successful nearshore delivery evolves around the right people, right processes and alignment with customers’ business goals.

I would like to know, whether you have similar experiences;  and what do you think plays the biggest role when it comes to nearshore services – price, quality, engagement, or the right mix between the different elements?


Find out more about Ricston’s Nearshore Service offering.

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Ricston Ltd.
Triq G.F. Agius De Soldanis,
Birkirkara, BKR 4850,
Malta
MT: +356 2133 4457
UK: +44 (0)2071935107

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Ryan Delia
Services Director