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Everyday the world goes through inevitable technological changes. No wonder that many updated skills are required from employees. If you want to stay relevant in the market, you should constantly check if your company is able to present a high level of productivity. In case this is a problem for you, you should definitely consider nearshore software development.

In-house teams are not always able to have all the important features which are necessary for a decent final product. Outsourced development teams are really cherished nowadays, as they are the perfect decision if you want to attract new talents into your business. Moreover, outsourcing is a great option for modern companies, as they can be productive, but at the same time save their costs and time. Of course, there can be difficulties on the way – outsourcing brings language barriers, timezone issues and sometimes all these things can be hard to manage.

This guide will tell you everything you need to know about nearshore software development and nearshore outsourcing web development. You will get acquainted with main benefits of nearshore software outsourcing and you will know how to build your own nearshore software development model. If you feel like you are interested, keep reading!

What Is Nearshore Software Development?

The first question that arises is: what is nearshore software development? Put simply, nearshore software development is delegating some important tasks or software development to country which is close to yours. If you choose to work with such a company, it is beneficial for you, as you don’t have any language barriers or time difference with the contractor. The optimal time difference between you and your contractor should be 1 to 3 hours.

Nearshore software development outsourcing is possible in many regions. Depending on your location, the nearshore development can take place in different places. For example, Latin America is nearshore outsourcing region for the USA, Chicago can be a server provider for Atlanta and so on.

The tendency shows that nearshore web development outsourcing will only become more popular with time. 90% of small businesses are going to outsource their business projects, and it’s really convenient, as nearshore development model focuses on the main business goals of the company. To create a perfect product, the development and communication should happen simultaneously. That’s why it is so crucial to choose the right location. Of course, you should take into consideration similar cultures of the countries. The closer you are mentally to your contractor, the easier it will be for you to get some agreement.

Difference Between the Outsourcing Models

At the first glance everything is easy and understood. However, there are different outsourcing models. Each one nearshore development model should be thoroughly considered. There are three types of software outsourcing: Onshore, Offshore and Nearshore. Let’s have a look at every nearshore programming model and compare them.

Onshore software development

If you choose onshore software development, you hire software developers in the same country your company resides. It is known to be the most expensive type of software outsourcing. The business activity is taking place in your own country. It’s good to choose onshore development if you need to communicate with your partners in person, if your data privacy is restricted, when to develop a product properly you need to see your partners physically. This is the most convenient variant for developers. Usually this method is the most rewarding, but it’s not always easy to align all the processes so they could organically work.

Offshore software development

Unlike onshore software development, offshore software outsourcing means hiring a vendor in a distant country. It is usually made to save costs and effectively manage your budget. You can be sure, that offshore will help you choose the lowest-cost option. Yet, the quality is also lower this way. One more obstacle is language barrier. The more significant it is, the more difficult it is to work over a project. However, this is not the only problem you should keep in mind.

Time zone difference, cultural differences – all these aspects can be dealbreakers as a result. Your team can become less productive and more vulnerable to various issues occurring on the way. Of course, there are always ways to manage the timezone gap: you can fix these problems with your vendor team. However, not every company is ready to change their time schedule so drastically. Projects which suit offshore software development best are those that require repetitive tasks and don’t have automated processes; less strategic projects; projects that don’t require high collaboration and which are not so influenced by high turnover.

Nearshore software development

Nearshore outsourcing model is fulfilling your custom software development needs by teams located within the same continent. The main principle is having a similar timezone, so it could be convenient for you and your partners. There are different nearshore partners for various countries. For example, Latin America is a great nearshoring partner for the United States, and Western Europe focuses on Eastern European countries, like Ukraine or Poland.

Talking about Ukraine, you can not only achieve a great result here, but save your costs too. While offshore outsourcing takes a lot of struggles, nearshore software development is much easier for a healthy project execution. So which projects are the best for nearshore software development? B2B, B2C and SaaS solutions; projects that require live communication; strategic projects that require a lot of discovery; software solutions that modernize complex legacy.

Essential Guide to Nearshore Software Development

Reasons to Choose Nearshore Software Development

It’s already clear that outsourcing is a beneficial practice for your business. The statistics shows, that companies choose outsourcing more and more, and the tendency is only going to grow higher. Each company chooses what appeals to it the most – offshore, onshore or nearshore. The income of companies that prefer outsourcing is going to grow significantly, as they cooperate with each other.

Of course, not everyone benefits from implementing nearshore software development. To help you understand whether you should do it, let’s have a look at some reasons why you should consider nearshore software development.

Comfortable geographic position

You already know, that nearshore software development depends on your location. That’s what sets this method apart from the rest. When you are choosing an outsourcing company, you should pay attention to the amount of qualified specialists in this country. Remember, that you need to choose offshore company that is not too far away from yours.

Project budget flexibility

When you are on a budget, you need to cut some expenses so you could manage all the development process. Nearshore software outsourcing is a good opportunity to save your costs in case you don’t have available providers in your region. At the same time, if you feel that your budget allows you to hire software engineers, you can do it and add more talented people into your business.

Easier team scaling

Having your own development team can be a great plus for you. If you had an experience of previous development with the team, it will be easier for you to go through the development process once more. Nearshore development allows you not to spend money on office rent and salaries.

Wide pool of developers

The bigger is the project, the greater amount of employees you will need to attract to it. Nearshore software development is a great option when you need to take the main liability off your team’s shoulders. You will be able to delegate a part of the project to an outsource company.

Pros and Cons of Nearshore Software Development

When you are familiar with the reasons why you should implement nearshore software development, you know better what to expect. Of course, there are many advantages and disadvantages of nearshore software outsourcing. This nearshore software development guide will show the main ones, so you could be acquainted with all the pros and cons.

  • Pros


It has already been mentioned in our nearshore web development guide, that outsourcing helps you cut expenses. Cost-effectiveness is achieved because you don’t have to rent an office or hire developers. Usually outsourcing countries are developing, that’s why the price is lower here too.

Closer collaboration

The short distance between you and the vendor is also a great plus. You don’t have to see your vendor physically, as the majority of issues can be solved via Internet. However, if your presence is obligatory, it’s not that problematic to connect with your vendors.

Similar regulations

Every region has its regulations you will have to follow. Before you start developing an app, it’s crucial to discover all the sets of rules to know what’s expected of you. Remember, that these rules are different In every region!

  • Cons

Nearshore can be more expensive than offshore

The main advantage of offshoring is low rates. Nearshoring is usually more expensive, even though the quality is higher. If you can’t find cheap providers in your region, you will have to hire a software building company.

Lack of companies

Keeping in mind that there might not be a company you need is important. It’s preferable to stick to well-known destinations, as they have already proven themselves in this sphere. Reviews can be a great helper for you.

Need in periodic monitoring

To keep an eye on your product, it’s crucial to contact your contractor from time to time. That’s one of the main flaws in outsourcing. The main inconvenience is different time zones. However, with the reliable team this aspect can be regulated.

Essential Guide to Nearshore Software Development

5 Tips for Choosing the Right Nearshore Software Development Company

Now you are acquainted with all the pros and cons of choosing nearshoring. Here are some tips to help you choose the right nearshore software development company.

Understand your company’s needs and challenges

If you see the final goal and understand potential milestones, it will be easier for you to start a development project.

Know the difference between onshoring, offshoring and nearshoring

It’s vital not only to know the difference between these methods, but to be able to choose the most preferable variant.

Partners who understand your goals

Having a dedicated team is half of the deal. When you can discuss all the important subjects with your team, it will make development process much more rewarding.

Check the security

Security should be a top priority – that’s how you check the reliability of the company. If there are some issues on the way, all the data should be safe.

Clarify about after-development support

Maintenance is just as important as the development phase. Make sure that this step will be executed properly.

Consider Inoxoft Your Trusted Partner

Inoxoft is a software development company that provides top-notch services around the world. Our dedicated team will help you meet your business expectations and will provide you with personalized experience.

If you are looking for a reliable partner, Inoxoft is the ultimate option for you! Contact us and get to know everything about nearshore software development!

Frequently Asked Questions

How to select nearshore development company?

To select nearshore development company you need to know your company's needs and challenges, find partners who share your goals, check whether your data is secure etc. To know more, read the article!

What is nearshore development?

When your business outsources specific software development projects or duties to businesses located close to another country's border, this is known as nearshore development.

How is nearshore outsourcing different from offshore?

Nearshoring is having company and the team of developers located on the same continent; offshore is  having them on different continents. 

Why is nearshore software development important today?

By allowing current employees to concentrate on the success of their projects and giving them the extra resources and tools they need to do so, nearshore software development is a terrific approach to make their jobs easier. Read the article and know what the benefits of nearshore software development are!