The Benefits of Agile Nearshore Development for Fintech

We’ve talked at length about the different advantages of agile development, as well as agile nearshoring for software products. We’ve been in the market for more than 20 years now, and we’ve worked with multiple types of companies, industries and software products. As such, we’ve seen the advantages of agile development appear time and time again for every project we’ve worked on. However, how did these processes benefit specific aspects of projects and what industry specific benefits they may have seen using agile methodologies? In this article, we will be offering an overview of what agile nearshoring is and the benefits it offers, while also offering a look at the specific benefits that a fintech software development company can have when implementing an agile methodology during their product development process, internally or through an agile software development company as a third party provider.

What is Agile Nearshore Software Development?

As we’ve mentioned once before, we talked about nearshore software development, as well as agile nearshore software development in two separate articles. If you’d like to read about nearshore software development, we recommend this article in particular. If you’d prefer to learn about agile methodology, and about the dedicated teams engagement model, this article would be beneficial for you.

As a general summary for what they are, nearshore software development is a type of software outsourcing where you hire software developers from a country closer to your boarders than offshore software developers, which involve countries that are usually on the other side of the world.

When we talk about agile nearshore software development, we begin to mix the concepts of software outsourcing types and project management methods. Agile refers to a project management methodology that uses constant updates and communication through sprints as a way to accomplish a project’s main objective; becoming the best version of itself. These sprints usually try to accomplish a certain set of goals; at the end, the team sees the advances of each sprint, determines if any changes need to be made, and then plan the next sprint according to the evolving needs of the project.

General Benefits of Agile Nearshore Software Development

These benefits can apply to any software project that you can think of. Later on, we’ll discuss some of the benefits unique to fintech software development projects.

Focus on High-Quality Products

Executing a plan to the letter, without considering the dynamic nature of agile nearshoring can be detrimental to the final product. As such, the flexible nature of the agile methodology allows the scope, prioritization and execution of the project to always be aligned with the project’s present needs. This lets any sudden changes needed to better the project be incorporated into the scope of the project without sacrificing progress.

Enhanced Control

The agile process comprises its process through a series of deliverables and time frames, known as sprints. Every sprint has specific tasks prioritized to better execute and supervise the development process. Agile software development services provide clients with an increased control over the development process through frequent meetings with team members, allowing stakeholders and project leaders to have full transparency over its evolution.

Reduced Risks

An agile software development company offers less risk than most other methods of development. Risk prediction is at the core of agile methodologies, since understanding the possible risks and unforeseen mishaps that a project can suffer makes planning for them ahead of time much easier through the use of backlogs.

Continuous Improvement

This benefit ties in with the previous mentions of control and the focus on quality. Agile nearshore software development offers continuous improvement of the products that are created in this method through sprints, something we previously mentioned before. These sprints can last for different amounts of time depending on the needs of the project, but each sprint calls for specific tasks and deliverables to be completed and presented at the end, where the client will evaluate and determine whether the deliverables need adjustments or not.

More Relevant Metrics

With projects being dynamic in nature, metrics and progress can be difficult to track. With agile nearshore software development however, essential metrics are determined to make sure data-driven decisions can be made all throughout the project, regardless of how priorities shift. From cycle time, flow efficiency, output, and many more, you’ll never loose track of the project’s progress.

Low Rates

Agile nearshore software development is also extremely cost-effective compared to other methods. Being a type of nearshoring, agile nearshore software development can offer almost a 40% savings in engineer salaries compared to onshore methods. This saving valid more for the United States compared to other areas, however you’ll always be more cost effective by using agile nearshoring versus other methods.

Similar Time Zones

Offshore software development normally tries to justify itself as a sort of “follow the sun model”, allowing for products to seamlessly flow from one region to another, assuring continuous development. However, this is rarely the case, and can even lengthen your development process by days. Agile nearshore software development will allow for companies to access a separate team of developers working alongside your own team, making communication more seamless, and accelerating the progress of your project rather than making it take longer to release.

Large Talent Pool

Agile nearshore software development opens the door to many untaped pools of talent. There is a general low supply of good software developers in the market, but that doesn’t mean progress stagnates. Talent will always be needed, and if you can get talented engineers to work on your project, while also being cost effective, the scope of talent has the potential to not only double, but makes agile nearshore software development seem more enticing than ever before.

Agile Nearshore Development Benefits Financial Software Companies Can Expect

Fintech software development, like most disciplines, can expect to find different specific benefits that apply only to their field. Here are a few that we can think of based on our previous experiences with other fintech software development projects.

Keeping a Close Eye

Technology companies in general like keeping things as air tight as possible when it comes to managing their product portfolio. This goes double for financial technology companies. By being involved 100% throughout the software development process, you are making sure to not fully give control over the process, unlike other outsourcing models such as the offshore model.

Optimize Their Budgets

Financial technology companies like to make sure their budgets are being used as effectively as possible. This goes beyond just being cost effective as we’ve mentioned before, we’re talking about making full use of your budget and not overpaying for what you’re not receiving. This ties in with some of the benefits we’ve mentioned before, but imagine you estimated that you’d need to ramp down on activities on sprint 3. Clients can optimize their budget by making sure they only pay for the output they’re planning to have. Fintech software development shouldn’t be inefficient, agile software development makes sure that it isn’t.

Easy to Scale

As you can easily make sure you only pay for the output you’ll be receiving, the same goes for when you need to scale up. Flexibility is at the heart of agile nearshore software development, so if you’re practicing fintech software development, need to accelerate your software development process further, and you’re looking to make custom enterprise software, this model offers just the right level of flexibility you’ll need.

Autonomy

Sometimes, all you really need in a fintech software development project is to develop a separate team of developers to execute specific tasks, like quality assurance. By making a self sufficient team that only needs high level supervision, you can diversify the activities your company can achieve not fully possible with just your internal team.

Less Staff Attrition

Fintech software development projects have an especially hard time with staff attrition. Agile nearshore software development gives the developers a sense of inclusion and impact in the projects they participate in, by making their ideas feel valued and impactful.

Fast Team Development

Finding talented fintech software developers can be quite a task. With agile nearshore software development, the large pool of talent we talked about before helps any fintech software company organize a team quickly due to their best practices in recruitment.

Fintech Software Companies can Trust Teravision Technologies

Teravision Technologies has been offering enterprise software development services for more than 20 years now. If you are looking for an enterprise software development company, with ample experience offering software development for fintech companies. Contact us if you’re looking to begin your fintech software development process with 20+ year veterans at Teravision Technologies.