Contact Us

Blog | Software Development

nearshore software development

The Ultimate Guide on Nearshore Software Development for IT Leaders

Spread the love

Are you struggling to build and maintain your in-house teams with diverse skillsets and competencies to keep up with the rapid technological changes? Then, opting for nearshore software development services is the best remedy for your business.

We hope our comprehensive guide on nearshore software development will help you understand the significance and benefits of this IT outsourcing approach.

So, keep reading further!

How IT Outsourcing Gained Momentum in the COVID Era?

Over the last two years, the business landscape has turned more precarious due to the global pandemic. Most startups and SMBs are still dealing with the post-pandemic blues, market shifts, and paradigm changes in their respective industries.

There’s no denying that the year 2020 has accelerated the adoption of digital transformation solutions. It compelled businesses to shift their operations online and opt for remote working to ensure business continuity. They had to rethink their long-standing business strategies and start embracing the latest digital technologies and tools for their business survival.

In the present software development market, IT outsourcing services have gained momentum all over the globe. The pandemic disruption has increased the demand and rationale for smart IT software outsourcing strategies and partners.

And therefore, outsourcing software development requirements has ultimately become a strategic necessity for businesses. It helps them effectively respond to abrupt business shocks and become more resilient.

Today, organizations are looking to hire multiple staff. They outsource projects to offshore and nearshore IT service providers to boost their business productivity and growth. Both approaches are in trend with their benefits and drawbacks.

Now, the real challenge comes for business and IT Leaders. Which approach will facilitate higher business scalability?

Should you choose an engagement model that is Offshore or Nearshore? Or, go with IT staff augmentation or project-based staffing?

While there are various types of IT outsourcing modelswe will demonstrate how nearshore development differentiates from other IT outsourcing models. You will discover how nearshore software outsourcing can help you expand your development practices. Also, keep you safe from the qualms of the global atmosphere.

But, before jumping into the topic directly, let’s first understand what does nearshore outsourcing mean?

Read Also – Software Development Guide

What is Nearshore Software Development?

Nearshore development outsourcing entails the delegation of software development activities to service providers in neighboring countries or in similar time zones. This outsourcing model focuses on the business requirements and goals, keeping processes and delivery parallel. Hence, development and interaction happen simultaneously while eliminating the time zone gap. This approach is helpful if you want to gain better control over your business’s operational costs and improve your bottom lines.

Nearshore software outsourcing offers numerous benefits, such as linguistic and cultural similarities, minimal time zone disparities, and proximity to a location. To reap the benefits, you must hire a trusted nearshore software development company. It aims to reduce your time and effort as well as break all the communication barriers.

Top Benefits of Nearshore Software Development

In the current scenario, IT leaders are considering nearshore software development outsourcing as a feasible option to ensure business sustainability. It’s not only cost-effective but also helps manage the entire process with minimal effort. It is because suppliers are in the same or close time zone.

nearshore development benefits

The other key benefits of the nearshore software development process are enumerated below:

  1. Access to Great Resources and Talent Pools

Augmenting your in-house project team with the best talent isn’t always an easy walk to the park. Nearshore outsourcing gives you access to an enormous global talent pool. This model helps you take advantage of other countries’ infrastructure and technological expertise. So, utilize it to build a robust IT product or service cost-effectively.

  1. Quicker Time to Market

In today’s highly competitive market, quicker time to market plays a critical role in business success. Nearshore software outsourcing helps you cut down your operating timelines dramatically. You don’t need to handle everything on your own with this outsourcing model. On the other side, you just need to delegate your tasks and achieve faster results for your business. This enhanced collaboration reduces the time to market significantly.

  1. Focus on Business-critical Activities and Skills

Outsourcing your IT requirements to a nearshore software development company helps you focus more on your core business skills. This model allows your in-house team to devote their time and effort to other business-critical activities by reducing the burden of excessive functions out of their skillset. Therefore, it is an effective technique that helps you to focus on what’s more important for your business.

software development

  1. Better Risk Management

Segment and delegating software development components and processes ensure better risk mitigation. It is always wise to distribute the tasks to different individuals or teams. The more responsibilities you divide, the better your business risk management will be. However, you must conduct thorough research to find the right nearshore software development company before assigning your tasks. Moreover, choosing this model also helps you reduce future complications.

  1. Seamless Communication

Longer distance introduces greater difficulties in terms of communication, control, coordination, and supervision. Outsourcing to a remote foreign country brings many linguistic and cultural problems. It makes communication very difficult. However, nearshoring can address this problem effectively.

Similar time zones and language commonalities facilitate smooth communication between the IT organization and the vendor. Both parties can interact effectively, thereby enhancing their understanding of business requirements and ultimately increasing productivity.

Open and effective communication is essential for better business collaboration and product development.

  1. Cost-effective Approach

Did you know that working with an offshore or nearshore software development company can help you reduce 40% to 70% of overall operational costs? Yes, you can reduce expenses as it allows you to find talents at cheaper rates in your adjacent countries. You can also benefit from lower tax incentives when you hire a nearshore company in a nearby country.

Furthermore, nearshore outsourcing helps you reduce the fixed overheads of your organization. It allows you to scale up or down the need for resources and talents based on the production requirements.

When Should You Approach a Nearshore Outsourcing Company

You should reach out to a reliable nearshore development company if your organization has the following business requirements or goals:

  • Lack of specialized developers
  • Limited technical expertise
  • Increased operational costs
  • Quick team scalability requirements
  • Introduction of an innovative product

Outsourced vendors can meet all your business requirements and eliminate gaps in the development process by offering custom software development services.

How to Choose the Best Nearshore Software Development Company

Nearshoring has always been a popular choice in the software development business. If you’re looking to hire nearshore IT, service providers, doing careful research is a must. Here’s what you need to look for when hiring a nearshore outsourcing partner:

  • Years of experience in the industry
  • Training and certification of developers
  • IT outsourcing company’s intellectual property rights and protection policy
  • Security measures they adopt to protect both parties
  • The cost of hiring nearby IT service providers
  • Business reputation and market reviews
  • Ease of communication
  • Quality of service

How You Can Get Started with Nearshore Software Development

Here’s how you can get started with the nearshore software development process:

  • Do a thorough analysis of the current economic and IT sector in nearby countries.
  • Know and understand the tax systems and regulations of the country you choose to hire remote developers from.
  • Conduct research and evaluate the nearby IT outsourcing partners.
  • Determine your project budget and timeline
  • Evaluate all the pros and cons
  • Get in touch with a reliable nearshore IT outsourcing partner and if you agree with their terms and conditions, sign a service contract and get started

Nearshore Software Development Work Principles

nearshore development process

  1. Analyze the economic and IT sector in adjacent nations
  2. Understand the tax systems and regulations of neighboring countries
  3. Assess the different nearshore outsourcing partners
  4. Fix your budget and timeline
  5. Evaluate all the pros and cons
  6. Contact your outsourcing partner and review their policies
  7. Sign the contract and get started


As businesses are looking to build and maintain digital transformation solutions in their organizations, the size and value of the global nearshore market are rising drastically. With the help of a dedicated nearshore development team, you can reduce or even eliminate many software development challenges faced during the process.

OrangeMantra is a reliable strategic IT outsourcing partner with 21+ years of experience in providing software development services and personnel to global clients from various industry verticals. Whether you’re looking for end-to-end software development, IT staff augmentation, or managed IT services, we can cater to all our IT outsourcing needs effectively.

You can choose us as your nearshore IT outsourcing partner as

  • We offer flexible engagement models and choices
  • We provide highly skilled developers at affordable rates
  • We deliver cost-effective solutions
  • We can quickly get the job done
  • We will get our hands dirty so that you don’t need to

We hope you have found this guide on nearshore software development helpful.


Q.1. Who is a nearshore IT outsourcing partner?

Ans. A nearshore outsourcing partner is a supplier that collaborates with businesses and professionals who share similar time zones and geographic locations.

Q.2 What is the cost of hiring nearby IT service providers?

Ans. Generally, a nearby IT service provider charges $25 – $50 per hour for a project. Get in touch with us to know about our pricing.

Q.3. What are the best locations for hiring nearshore developers?

Ans. Below are the best locations for hiring nearshore developers at cheaper rates:

  • Brazil
  • Mexico
  • Argentina
  • Chile
  • Columbia
  • India

Have More Questions? Our IT Outsourcing Consultants Are Just a Click Away!

How do you want us to help transform
your business?
What do you aspire to become as a
tech professional?