Content:
This is the first in a series of blogs discussing the impact of AI on the nearshore development business.
Much has been written about the impact of AI on software development (including here at FusionHit), but little has been written about how AI impacts the specific dynamics of working with a nearshore or offshore development partner.
A Bit About Me
I began my career in IT services over a quarter-century ago at a large consulting firm. Over my career, I’ve been an on-site consultant, a project manager, a solutions architect, and, eventually, a new-logo and expansion salesperson for various IT services and managed services.
The Elephant in the Nearshore AI Room
On my first day at that big consulting firm, one thing was made clear: appearances matter. Clients, especially smaller ones, are acutely aware of their spending and sensitive to perceived productivity. Any lull can be seen as dollars down the drain. Being billed hourly is no picnic—clients naturally scrutinize the productivity tied to that hourly rate.
Now, as more full-time internal employees leverage generative AI to boost their productivity, clients of development partners and consulting providers must adopt these tools to avoid appearing less productive than their FTE counterparts.
But doesn’t this create a conflict of interest for service providers? Enhanced productivity could mean fewer billable hours and, consequently, less revenue. However, as with most technological advancements, there will be winners and losers. Companies that prioritize productivity will stand out against competitors who resist AI adoption, winning more deals in the process. After all, wouldn’t you prefer to be known as the high-productivity vendor?
In the end, the strongest nearshore providers will embrace generative AI assistance because they have no choice – they must to remain competitive against internal teams and other partners. Companies like FusionHit are examining every stage of a project—including, of course, the software development—to offer more value for each hour billed. When you can deliver tremendous productivity, billing hourly becomes a lot more enjoyable!
In our upcoming blogs, we’ll explore the various components of a nearshore software engineering project and how generative AI can impact each part. There may be more parts than you think!
Key Statistics to Consider:
- Developers using AI tools like GitHub Copilot have been shown to complete tasks up to 55.8% faster than those without such tools. (arXiv)
- The market for AI and machine learning in nearshore development is expected to grow by 35% annually through 2028. (triosource.com)
- By 2025, over 75% of companies will integrate AI into their core operations. (Softura)
Daniel Pecoraro
What’s Next in This Series?
In our next post, we’ll break down how each role in a nearshore team—from QA to product management—can benefit from AI-powered support.
You’ll also see where human judgment is still irreplaceable.
Coming Soon:
The Power of AI Note-Taking in Nearshore Development
Over my career—and during my academic years—I’ve likely filled tens of thousands of pages with notes. In nearshore and offshore development, note-taking carries real weight and purpose, especially in consulting environments.
