In today’s fast-paced world of FinTech, technology innovation is not merely a choice; it’s a necessity. From FinTech to InsurTech, RegTech, and any other “Tech” sector, technology is the foundation for powerful platforms, an enabler of innovation, and the driving force behind new services and solutions. However, technology alone isn’t enough. To thrive in the FinTech landscape, you require many complementary capabilities, including product management, agile engineering practices, design, UX/UI, testing & QA, automation, infrastructure, security, integrations, architecture, and cloud services. Developing cutting-edge technology solutions necessitates significant investments, often consuming the lion’s share of your budget.
Exploring your options
1. In-house development
One approach is to build in-house all the essential capabilities, which means recruiting and hiring the necessary experts and talents locally. While this approach offers maximum control, it comes with substantial costs. This option can be costly in regions with high labor costs, such as Switzerland. Additionally, the scarcity of tech talent can make headhunting and hiring lengthy and challenging.
2. Nearshoring
Nearshoring has been a viable option for the past 10-15 years. It’s not a novel or exotic concept anymore. Many countries, such as Romania, Poland, Bulgaria, Portugal, and Ukraine, have experienced significant growth in the IT services outsourcing industry. They’re home to numerous IT service providers ready to support their clients. Nearshoring offers a cost-effective solution with geographical proximity and time zone advantages.
3. Remote-First Workers
The COVID-19 pandemic has ushered in a new trend. Over the last 2-3 years, “remote-first workers” have emerged. With many developers working from home, this model opens the door to flexible collaborations with tech experts worldwide. But is it a viable new option for your FinTech company?
Navigating the Challenges
New challenges arise with numerous options, many providers, different engagement models, and various locations. The key questions include:
- Where to find the right provider?
- How do we assess and evaluate the most suitable partner?
- Which engagement model to choose?
- Should you work with a specialized company or with individuals and freelancers?
Everything too often appears promising “on the surface,” and most providers make bold claims about their outstanding capabilities. But will they honestly deliver?
Evaluating and selecting the right partner
Effectively assessing potential partners is a significant undertaking. It requires the guidance of an experienced senior manager, if not an executive leader. Here’s a structured approach:
- Start with clear objectives: Define your specific needs and expectations. Understand the level of strategic importance of the envisioned partnership.
- Selection criteria: Develop a list of criteria based on your specific requirements. These may include expertise, portfolio, client references, and cultural fit.
- Structured assessment: Evaluate in phases, such as preliminary assessments, in-depth interviews, and even small-scale pilot projects to gauge compatibility.
- Due diligence: Thoroughly research potential partners, including background checks and, if possible, site visits to ensure they meet your standards.
Leveraging advisory and guidance
Thankfully, there are experienced nearshore software development experts with over a decade or two in the industry. Working with these experts is invaluable, who can provide guidance and impartial advice to help you find the best-matching provider. These experts have deep insights into the global ecosystem and maintain personal relationships with numerous providers in various countries.
The author of this article is a nearshoring expert and offers services under the Value Leap brand, specializing in helping clients in the DACH region.
The “speed dating” seminar format
Innovative seminar formats can make it easy, efficient, and even enjoyable to learn more about nearshoring and connect with pre-screened providers. One such event, “Meet Nearshoring Leaders in FinTech,” is scheduled for November 28, 2023, in Zurich. At this event, nine leading nearshoring providers will present FinTech-themed case studies and solutions they’ve implemented successfully for their clients.
Conclusion & benefits
Working with experienced and impartial industry advisors and attending seminars where multiple providers share case studies and best practices are invaluable and worthwhile. This approach offers several significant benefits:
- Time savings: Companies can save many months needed for a proper provider evaluation process, reduce the direct costs, and mitigate the – often overlooked – opportunity costs.
- Accelerated time to market: With the right provider, FinTech companies can release value to their customers more quickly by leveraging the expertise and resources of the partner.
- Cost savings: An optimal nearshoring partnership can lead to significant and sustainable cost savings and other strategic advantages.
- Innovations: Working with experienced providers and experts can also spark innovations. Fresh ideas and out-of-the-box thinking can lead to better results and competitive advantages.
In the quest for the ideal technology partner, careful consideration, expert guidance, and structured evaluation processes can unlock the full potential of your FinTech venture. Whether you opt for in-house development, a nearshoring strategy, or explore the world of remote-first workers, making informed decisions is crucial to your success in the competitive world of FinTech.
Fintech News Switzerland’s readers will enjoy an exclusive discount of 40% off the ticket prices. Click here to register for the event and apply the promo code “FNNCH” during checkout.
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