Many companies approach nearshore talent with a transactional "vendor" mindset. They see it as a way to procure temporary coding resources, focusing only on the hourly rate. This approach is guaranteed to produce mediocre results and high churn. To unlock the true potential of a nearshore model, you must evolve from treating your partner as a vendor to embracing them as a strategic partner. This article outlines the key steps in making that critical transition. The core tension is between a short-term cost-cutting mindset and a long-term value creation strategy.
The vendor mindset vs. the partnership mindset
Understanding the difference in mindset is the first step.
- A vendor is a cost center. You focus on minimizing their rate and see them as interchangeable. They are given siloed tasks and are kept at arm's length from your core team and strategy.
- A partner is an investment. You focus on their impact and see them as an extension of your team. They are deeply integrated into your workflows, culture, and long-term product vision.
Key steps to building a strategic partnership
Making the shift requires intentional changes in how you operate and communicate.
- Integrate, don’t isolate. Your nearshore engineers should be in the same Slack channels, the same sprint planning meetings, and the same virtual all-hands as your US-based team. They should report to your engineering managers, not an external account manager.
- Delegate ownership, not just tasks. Give your nearshore team ownership of an entire feature or component. Empowering them with autonomy and trusting them with responsibility is the fastest way to build a sense of shared purpose.
- Invest in the relationship. Get to know your nearshore team members as people. Include them in virtual team-building events. If possible, budget for occasional travel to bring the teams together in person.
- Align on long-term goals. Share your product roadmap and company goals with your nearshore partner. When they understand the "why" behind their work, their engagement and proactivity will skyrocket.
Choosing a partner who enables partnership
This evolution is only possible if you choose a nearshore firm that is structured to be a partner, not just a body shop. Howdy.com is designed for this.
- We focus on long-term placements. We find engineers who are looking for stable, long-term roles where they can become core members of a team.
- Our model is built for integration. We facilitate a direct relationship between you and the engineer. There are no layers of project managers in between.
- We vet for partnership potential. Our screening process assesses not just technical skills but also the communication, collaboration, and professionalism required to succeed as an integrated team member.