Nearshore delivery models remain a valid response to many of the pressures financial institutions face today. The challenge is that they tend to focus on areas such as application maintenance rather than transformation. How can organisations sustain truly transformational IT projects that call for continuous and agile interaction between the business, architects and development teams?
Financial institutions must take a more responsive approach to nearshore. Flexible styles of working are ideal when working in environments where quick results are a key success factor, and allow external expertise to co-locate on the client’s site to support internal resource. This can then be moved to a nearshore location and even back onsite subsequently according to project needs. The approach introduces new and unique models of co-operation between a financial institution and its technology service provider. Based on strong cultural alignment, physical proximity and ability to bring highly qualified and flexible skills even closer to home, it offers the prospect of just days and weeks to measurable productivity and impact, with rapid transition if and when needed between resources working onsite and nearshore.
Main benefits include:
Agility: Matching client requirements to quickly and cost-effectively move resources from onsite to nearshore and back (if needed) in order to ramp projects up or down. By offering a broad range of professional expertise, it supports focus on core capabilities and avoids the need to build dedicated long-term capacity to meet short-term demands;
Speed: Resources can be deployed on client site within two to three hours, thanks to rapid transport connections across major European financial services centres. Physical closeness is made even more attractive by good alignment of cultural background;
Cost-effectiveness: The European countries providing the skills are among the strongest growth economies within the Eurozone, while cost of delivery is often among the Eurozone’s lowest. Cost reductions can range from 30-50%, while maintaining substantial levels of agility;
Flexible intervention: Responding to market challenges and regulations, while implementing large cost-cutting programs and managing architectural complexity, calls for carefully designed and executed transformations. Fast, lean and flexible intervention offers the best support for multiple rapid-response high-impact transformations.
In a landscape where time to market is shrinking and cost reduction and regulatory compliance remain major issues, a new kind of response like ‘NearBy’ is imperative. It offers more than nearshore, enabling institutions get closer to the right expertise and delivery capabilities they need to beat today’s challenges.