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A Guide to Near Shore IT Staff Augmentation

From cloud computing to ecommerce, as business goes digital, building a robust IT network infrastructure that can support and protect online platforms becomes all the more important – not just for major enterprises, but increasingly for small-to-medium sized businesses as well.

Many SMBs in the United States caught in this precarious skills gap struggle to support their IT needs by outsourcing to local contractors and agencies, but find that the costs are prohibitive compared to the results yielded. 

While offshoring provides a golden opportunity to capitalize on lower labour costs and highly skilled talent overseas, it too comes with its share of struggles and challenges particularly around time zones and language barriers.

However, a number of American SMBs have found that they don’t need to go so far afield as India or China to satisfy their offshoring needs. They have a country nearby with lower labour costs, a favourable exchange rate, and a large pool of highly-trained IT professionals from around the world – Canada.

As a result, they are finding success with a middle-ground solution called “nearshoring,” a variant of offshoring in which companies outsource certain business operations to countries that are geographically close to and culturally similar to their own.

RELATED:  Nearshore IT vs. Offshore IT Staffing Strategies

Curious about whether nearshoring is the right IT staff augmentation solution for your organization? We’ve put together this guide to help you find out.

The Challenges of Offshore IT Staff Augmentation

While offshore staff augmentation can yield considerable efficiencies and give your organization access to an international talent pool, it does come with a number of hidden costs and challenges. For instance, many companies underestimate the difficulty of coordinating transnational teams across multiple languages and time zones. Additionally, cultural differences can also create significant obstacles and communication and coordination between teams. 

When it comes to delivering a complex IT project on budget and on time, clear communication is critical. One small misunderstanding or mistake can ripple down the line creating problems that will take time and money to solve. 

Additionally, it’s difficult to maintain strong project management oversight across multiple time zones. A project manager cannot respond quickly if problems arise with an offshore team while they’re asleep and vice versa.

Nearshoring IT staff augmentation offers the similar savings on labour costs and engineering talent without having to navigate time zones, language barriers, and culture shock. For instance, at Yoush, we help a number of American companies connect with talented Canadian IT professionals and engineering grads from top schools to not only close the skills gap, but take advantage of tax savings and the favourable exchange rates compared to local vendors.

The Advantages of Nearshore IT Staff Augmentation in Canada

As mentioned above, nearshoring your IT resources yields a number of benefits over transcontinental offshoring, but why is Canada a gold mine for nearshore IT staff augmentation specifically? 

For SMBs in the United States, outsourcing to Canadian contractors and firms can reduce operating costs and cut labour expenses by up to 30%. On the one hand, the strength of the American dollar versus its Canadian counterpart means your human resources budget goes much farther. Additionally, salaries for IT and tech workers in Canada are lower than those found in San Francisco and other notable tech cities with a similar level of experience and technical knowledge. 

The presence of several top computer science and engineering schools in Canada not only offers a wide talent pool, but the country’s open immigration policy attracts a diverse array of top candidates from around the world. 

In terms of operations, the benefit of the United States and Canada sharing the same time zones cannot be overstated. Connect and coordinate with nearshore teams instantly for status reports on current projects or to discuss upcoming initiatives – no 8 a.m. video calls to speak with a team member halfway across the world. 

Additionally Americans and Canadians sharing languages and similar work cultures means that it’s easier to integrate nearshore resources into existing workflows and company culture with no disruption to communication or oversight. You never have to worry about a key detail getting lost in translation and causing problems down the line.

Finding a Nearshore IT Staffing Partner

For companies that are interested in pursuing nearshore IT staff augmentation, it’s beneficial to connect with a local staffing agency with a specialty in the information technology industry. However, even then it’s important to find a partner that takes the time to fully understand your organization’s needs and culture to connect you with candidates who can integrate quickly and deliver the solutions you need. 

Experience with nearshoring and the intricacies of US-Canadian tax policies and regulations is also invaluable for making sure you’re able to take advantage of every possible efficiency, such as labour tax credits. 

For over 20 years, Yoush Consulting has helped US-based SMBs take advantage of the opportunities offered by nearshore IT staff augmentation in Canada. Our co-resourcing model ensures you get access to the right talent, on-demand. In as little as 48-hours, you can connect with highly trained IT resources who are able to get up to speed fast and start delivering results. 

We ensure your nearshore resources are never more than one or two time zones away to maximize efficiency, drive clearer communications, and provide you with better oversight for peace of mind. 

We also take the time to learn about your and your organization, asking the right questions to identify your skills gap and connect you with our network of experienced IT professionals in Canada to find the right fit. 

Contact us today for a free consultation to learn more about whether IT nearshore staff augmentation in Canada is right for you.