Our Team of professional developers is focused on helping our clients thrive in their day to day development processes. Of sure, any country has software development companies, but the quality that no-name companies deliver will be pretty different from well-known outsourcing destinations like Estonia or India. That’s why it’s better to choose an offshore company with many reviews than a questionable nearshore programming firm. If adjacent countries aren’t IT-oriented, you’ll be able to hire an experienced offshore software development company. As we’ve mentioned earlier, a nearshoring country is the one that has little to no time difference. Since it is literally ‘near’ to home, it is easier for companies to visit their nearshoring teams.

For example, clients from the USA often can’t get in touch with Project Managers from India or the Philippines. So, if you’re hiring a team from Central Europe, it’ll take you a day or two to take a plane to Estonia, discuss a project with the development team, and return home. Under a time-and-materials contract, the service provider bills you for time worked plus the cost of materials used, such as hardware and software licenses. That is why we always strive to be in sync with you and your business processes.

alternatives to nearshore software development outsourcing

For example, let’s say you are a business owner or manager of a firm in Norway. You decided to automate certain processes inside the company or offer online solutions. This project requires in-depth IT knowledge and a team of developers that you don’t have in-house. You find a Lithuania-based company that is suitable for your project. After a few conversations, you decide to collaborate with this company. Compared to offshore outsourcing, nearshore outsourcing allows for better communication during custom software development and provides clients with a better work dynamic.

Get A Nearshore Alternative For AWS Software Development Talent Needs In US

Team interactions are much more comfortable as they happen in real-time. Good knowledge of a common language enables a clear understanding between parties and ensures that the resulting work will satisfy your expectations. Offshore outsourcing implies hiring third-party providers, often situated in other countries in the world. There are three main cooperation models in outsourcing – learn how each of them can benefit your business. We’ll match your staffing needs and find the right candidates for your IT roles.

Bottom line is that whichever model you choose based on your needs, you can always find reliable partners if you pay attention to their expertise. From our experience, the best idea is to partner with people who can deliver a quality product, and the rest of the factors come next. However, if you choose a vendor who can https://globalcloudteam.com/ do a great job while changing less than your local developers, you would get a great end-product at a reasonable price. A good price to quality ratio is the key, but quality should always be your top priority. Nearshoring is exactly what it sounds like – outsourcing your project nearshore, to the countries nearby.

Key Factors to Consider When Choosing a Nearshore Software Development Team

Nearshore software outsourcing provides the opportunity for companies to hire developers that work in similar time zones and share many of their working hours. Nearshoring also helps knock down communication obstacles customers fear when looking for an offshore development partner. Nearshoring software development has become popular because it guarantees a better value and significantly reduces costs for customers that outsource development efforts to Nearshore service providers. We believe this is a unique aspect of the nearshore model relative to farther away development centers in India and Eastern Europe or even East Asia.

And speaking of the cost, offshoring might be even more cost-efficient than nearshoring. With a shared time zone, clients also gain more control over the software development process. Granted it will not be full control since you have employed an outsourced team. However, by being able to be in constant contact with the remote team you can have more understanding with regard to development project timelines. Nearby countries may not be as cheap as other countries farther away. The main benefits of nearshoring include similar language, cultural proximity, and convenient time zone and location.

This is considered the most affordable outsourcing option, which is a significant advantage of this model. For the US-based company, offshoring destinations could be Asia, Eastern Europe or elsewhere. As you see, there’s no right or wrong answer to which model is better, all of them suit different circumstances and different needs. Regardless of whether you opt for onshoring, nearshoring, or offshoring, outsourcing as a whole has proven to be a highly efficient cooperation model. In a modern global market, there’s little difference between whether your developers sit by your side at the office or do the same job from another country or continent. Outsourcing your development project to other companies, whether domestically or abroad, allows you to focus on more important matters than onboarding people and taking care of their needs.

Nearshore software development outsourcing with the right model could bring a positively disruptive impact on delivery, productivity, and results. ExamplesA US-based company outsources a project to a Mexico-based vendor. A German startup delegates work to an extended development service provider in Poland or elsewhere in Europe. Offshoring means outsourcing business activities to countries that are economically less developed.


From the moment you hire a team, you need to periodically contact them and monitor the process. Fortunately, holding meetings with nearshore countries is easy; for example, we at VironIT always try to organize video conferences with customers at a convenient time for them. There may be IT companies in every country, but what is the quality of their services? Will an unknown company do things better than a company from proven outsourcing countries? If so, we recommend considering offshore companies, but be sure to check the reviews.

Instead of working through an intermediary, you can set up in-person meetings or train the programmers yourself. If necessary, an external team will be able to start working on the project immediately. The good news is that even if you alternatives to nearshore software development outsourcing make a mistake, outsourcing is a quite forgiving cooperation model allowing you to quickly change your decisions and adapt to the new conditions. If anything goes wrong, you can always disband the team and quickly gather a new one.

alternatives to nearshore software development outsourcing

A good developer is hard to find, and you just have to imagine how hard it must be to hire an entire team. Developed countries have a sizable demand-supply mismatch in this area, and it’s not to say that there are too few good developers in the US, it’s just that demand is much higher than in other countries. The obvious and probably the only disadvantage of onshoring is its cost-efficiency. Hiring people from the same country means you’ll be saving no money on their hourly rates.

Examples of Outsourced Nearshore Software

Thus, compared with onshore, nearshore hiring boasts more cost-effective leverage. This also allows companies to reduce internal tech infrastructure and ramp up the in-house capacity. Although the pandemic times have let us get the knack of it, remote management may still deter some companies from this model.

A typical example of nearshoring would be a US company outsourcing its project to a vendor from Mexico or Canada. Leverage our software development expertise to build custom applications, modernize legacy systems, and build powerful API integrations. The largest nearshore countries for software development are Mexico, Argentina, Colombia and Brazil. We can also include Costa Rica, Uruguay and Peru to the list as they have solid offerings in this area. Nearshore is when you hire a development team that is from your own country. It is one of the important things you need to consider the experience of the nearshore company which is very important to get the best service.

alternatives to nearshore software development outsourcing

Despite all the disadvantages of offshore outsourcing, it remains the cheapest option. If there are no affordable developers in your region, you are better off hiring an offshore software development company. One underestimated benefit of nearshore outsourcing is the opportunity to meet with your remote team face-to-face. These in-person meetings with various specialists can give you a more accurate picture of the services they provide and the people you are going to work with.

A Good Nearshore Outsourcing Company Enables You to Scale

More so, it will be easier for you to meet in person without travel costs making dents in your budget. Not every company has been IT-oriented so you were unable to hire experienced service providers so most people consider choosing an offshore company with positive reviews. The nearshore software services not only have a lot of benefits but also can carry a few drawbacks.

Why Outsourcing to a Nearshore Software Development Company Might Be the Right Move – Entrepreneur

Why Outsourcing to a Nearshore Software Development Company Might Be the Right Move.

Posted: Wed, 10 Nov 2021 08:00:00 GMT [source]

If the offshore staff are not fluent in English, this often presents a significant obstacle to efficient work. In that case, you might consider working with a US-based IT company outside New York State with significantly lower fees. According to Statista, IT outsourcing is forecast to account for a revenue of US$351 billion in 2021. Spending in the overall outsourcing industry is the highest within the Americas region.

Nearshore vs offshore in software development

Today, most companies can consider the nearshore outsourcing company as the key factor for the success of their company so most companies will prefer to choose this company for their increased growth. The nearshore can refer to your outsourcing partner in a neighboring country which may be a short distance away. Nearshore outsourcing means an agency that is undertaking software development or certain tasks will do the part of the work which can able to save your time. From our experience the farther from U.S. shores and time zone you go the lower the price point.

Why are so many companies looking toward outsourcing their software development work to a nearshore software development center? As the Nearshore Software Outsourcing industry grows more popular, more and more companies are considering it for their own needs. As you can see, seamless communication is an essential part of nearshore software development. The quality of the final product depends on understanding and trust.

Whether your goal is to cut costs, get more time to focus on your core business activities, or augment your in-house team with new talents, outsourcing is a viable way to achieve a wide variety of goals. Outsourcing is especially relevant in software development as many US-based tech leaders cannot get enough experts to fill up all the positions. Not because there aren’t any good experts in the US; there aren’t enough of them. Great nearshore developers have outstanding recruiting teams that not only can scour the market for great talent but also can interview candidates technically. In fact, many nearshore development firms will market their ability to hire only the top 1-2% of the market but neglect to highlight their ability to retain such talent. The advantages of nearshore development are too significant to ignore.

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