Skip to Content
App Development
6 minutes read

What Is Nearshore Software Development?

By Robert Kazmi
By Robert Kazmi
App Development
6 minutes read

In today’s economy, many organizations are asking what is nearshore software development and how can it benefit my business? Software development is a highly coveted service and skill in the workforce. Nearshore software development services have been a popular development option for businesses of all sizes for many years. 

However, the current economic realities facing companies as they struggle to keep up with inflation, staffing issues, and surging interest rates have increased demand for nearshore development services. This post will explain nearshore software development and why many companies choose this outsourcing model for their software development projects.  

Understanding Nearshore Software Development 

Nearshore software development refers to outsourcing software development projects to nearby countries in a similar time zone to your business. For example, nearshore software outsourcing generally means sending projects to Latin America for a company in the United States. 

The most popular nearshore software outsourcing destinations in Latin America are Colombia, Argentina, Mexico, and Brazil. These countries share a similar culture and, more importantly, working hours with companies in the United States. Cost reduction is a major reason businesses choose the nearshore software development model, but it is not the only reason. 

When it comes to outsourcing software development, your company has three options: nearshore, offshore, and onshore.

Businesses can save even more money if they outsource their work to far-east offshore destinations like China or India. However, offshore development comes with a lot of associated risks and issues. For example, since offshore development companies work on the other side of the world, working hours won’t overlap. In addition to working opposite schedules, there is a larger cultural and language barrier with offshore software developers that makes true collaboration and timely communication difficult.

If you want to hire software developers in your local area or country, this would be considered onshore outsourcing. However, onshore software developers are the most expensive option for businesses in the United States because of the costs of hiring highly skilled development professionals. Therefore, due to price, many businesses look for outsourcing alternatives to the onshore software development model. 

Why Should My Business Choose Nearshore Software Development? 

If cost savings are the primary reason companies look for outsourcing alternatives to onshore options, why shouldn’t your business choose the cheapest option in offshore software outsourcing? There are several good reasons why your business should strongly consider nearshore software development over offshore development, including:

  • Better communication and collaboration
  • Geographical proximity 
  • Solve staffing issues
  • Access to a larger talent pool
  • Greater efficiency 

Better Communication and Collaboration  

Nearshore software development teams provide better communication and collaboration than offshore development teams. However, the most important aspect of nearshore software development is that it shares a common time zone with your business. Nearshore software development services are never more than four time zones away from your business, and typically, it is two time zones or less. 

Sharing the same working hours improves communication and collaboration standards. To communicate with an offshore software developer, you or they will have to work at odd hours, reducing the potential for collaboration and making articulating information difficult. In addition to sharing time zones, nearshore software developers are likely to speak fluent English, which is not the case for offshore developers. 

Communication and collaboration are essential to the software development process, especially if the outsourced development team will be handling the project management aspect of the project. 

Geographical Proximity 

Physical proximity might not seem important to software development, especially if your company is comfortable with outsourcing. However, time zone proximity is crucial for communication and collaboration. In addition, if you ever need to travel to or want to meet your nearshore team in person, geographical proximity makes it easy

While face-to-face communication is not essential to the success of software development, many companies like to travel and spend a little time working with their development team. It is far easier to travel to a nearshore software development company than an offshore company. 

Solve Staffing Issues 

A nearshore software development company can also provide staff augmentation services to your business. Many businesses have difficulty finding all of the tech talent they require in their local area. In this situation, nearshore software development companies can be a great staffing resource. If you are having trouble finding the talent to round out your internal development team, nearshore software developers are the perfect solution. 

These professionals are already experienced working on a range of different development projects. Whether you only need a design specialist or a few developers to help your team finish a project on time, nearshore staff augmentation is an easy way to bridge staffing gaps on short notice. 

Access to a Larger Talent Pool 

Nearshore software development not only gives you access to a larger pool of talented software developers but also ensures that the talent you find is culturally aligned with your current teams. Too many businesses are restricted to the talent in their local area. However, this can be difficult when your organization requires specific skills that might not be available or even common in your local area. 

Nearshore software development gives your business access to the best software development talent available in Latin America. Countries like Colombia, Brazil, and Mexico are rich with software development talent at affordable prices. However, many American companies don’t fully utilize this valuable resource for their software development projects. 

Greater Efficiency 

Nearshore software development is far more efficient than offshore development. The primary reason nearshore development is more efficient is that it is closer to home. Successful software development thrives with regular communication and collaboration. When you are more than a few time zones away from your developers, basic communication takes longer, and any issues that need to be addressed or approved by your business take longer due to the time difference. 

How Do I Choose a Nearshore Software Development Company?

Most businesses want to know how they can find the best nearshore software development team. After all, the quality of your custom software depends on the skill of your nearshore software development team. The best way to find the right development company is to assess your needs and review each company’s capabilities

Software development is a vast discipline. Most businesses are only looking for a mobile app or website, but even within these two software categories, there are several different specialties. Understand the type of project you are looking to build, review the work done by the companies you are considering, and speak to them about their capabilities.

A quality app development partner will be honest about their capabilities and won’t mislead you or take on work they can’t handle. We hope this post has been helpful to your business and answered the question: what is nearshore software development?

Girl With Glasses

Want to Build an App?

Contact Us