Should Companies Consider Nearshore Software Outsourcing?

Additionally, short travel distances allow for face-to-face meetings during critical stages of projects. As such, it’s not unusual for our teams and our client’s teams to co-locate for portions of a project. Ultimately, when done correctly, nearshoring can provide some serious advantages in terms of cost, compatibility and communication. When a company is looking for help with its IT applications, outsourcing usually either happens very locally or very remotely. It’s either a friendly business down the road or a company based halfway across the world. Due to the geographical proximity of both regions, it is fairly easy to establish a smooth cooperation workflow between them.

When your team members come from neighboring countries, they often share a lot and can have face-to-face meetings often. One of the main reasons why companies explore offshore outsourcing for software development is the attraction of lower programming rates. In fact, Nearshore outsourcing providers in Latin America and South America boast excellent programmers with hourly rates that are much lower than programmers with the same skills in America. Since developers are often well-paid, many companies—especially small businesses—often try to stay within budget by finding cost-effective solutions for every development project.

From startups to Fortune 500, all-sized companies have tried our services and decided to stay. During the project, teams will have to communicate back and forth at every part of the project and keep one another in the loop at all times. Live communication among teams breaks the physical limitation and makes a nearshore software development team feel closer to the company’s achievements.


Offshore would be doing the same but with a company located in another country, most often in a different time zone. Nearshore lies in the middle and refers to outsourcing work to a company or a freelancing team in a neighbouring country.

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Everyone on the BairesDev team has some share of traditional DevOps responsibilities. Our distributed work model allows to embrace and extend DevOps principles and culture throughout almost every country in Latin America.

You’ll have hat your disposal seasoned professionals that can provide your team with guidance and greater support, as well as efficiency and better work methodology while, at the same time, keeping an eye on the budget. Once you decide to outsource, you also need to create a design document to share with your internal team and outsource – nearshore development partner. This plan should have clear accountable milestones, testing requirements, and expectations for iterations. By combining the mature nearshore development services quality model, digitized processes and domain expertise, we are able to offer our clients services that are based on Service Level Agreements . This represents an enormous advantage to hiring managers and their employers, since value is measured by results rather than time sheets, and man hour rate comparisons. Located halfway between Mexico City and Monterrey, Aguascalientes represents an alternative to people that want to enjoy the infrastructure of a modern city, without the crowds.

Geographical Proximity If Business Trips Are Required

With the right talent, you will accelerate your digital transformation and time-to-market. By bringing the right people to the table, our nearshore software development services empower you to tackle your next project. In the last few years, leveraging nearshore outsourcing has become an invaluable tool for companies that want to grow quickly and scale smart. Outsourcing development projects to Mexico, in particular, provides businesses with access to top-tier talent at a lower cost than hiring a similarly skilled, US-based developer.

Nearshore outsourcing means that you delegate software development or certain tasks to companies located in geographical proximity to your country. When you hire a nearshore company, the difference between you and the contractor should be from 1 to 3 hours. This way, you have minimal time difference and no communication barriers with a contractor. Those companies that prioritize minimal time difference between them and software developers choose a nearshore model to satisfy their needs. Although it might be more expensive, many businesses are ready to pay more to ensure that tasks are completed promptly.

What Is Nearshore Software Development Outsourcing?

To that end, thoroughly vet potential candidates before the start of any interview process, and keep in mind that some companies may prefer to access the structural integrity of the remote location in person. Offshore Integration testing software development IP can be hard to secure legally, as laws vary widely by nation and continent. Businesses that rely on a patented idea can often be better served by investing in a nearshore company.

nearshore software development outsourcing

Matching workdays are crucial in terms of software development methodologies like Agile and Scrum. Project managers in the US no longer have to bear a 20+ hour trip to Asia if the people they are meeting are just in South America or Latin America. In respect to onshore outsourcing and offshore outsourcing , nearshoring is somewhat the middle ground.

Tips On Choosing Your Nearshore Software Outsourcing Company

Offshoring, on the other hand, is when a business gets services from any foreign country regardless of its proximity. Considering the rapid development of the IT industry in Ukraine and a very welcoming business climate, it comes as no surprise that Ukraine has become a leading outsourcing destination in Europe. Nearshoring is the perfect solution for European software development companies that seek to expand their teams and augment their staff involving specialists from the international talent pool. Today, Ukraine is easily one of the best destinations for European nearshoring, so it might be the best shot at trying to outsource projects there.

  • You are currently on the lookout for a nearshore or offshore development outsourcing option, but, in the long run, you are planning to have remote R & D facilities of your own.
  • Again, Agile project management processes and direct access to the professionals are vital.
  • They have high-quality engineers who are prepared to go above and above to add value to development.
  • The following infographic presents the top offshore and nearshore development regions, key insights, and statistics regarding outsourcing IT activities.
  • Focus on choosing a partner that has experience working on similar projects and a track record for meeting expectations.

One of the major advantages of nearshore outsourcing is that partnering companies can work in similar time zones, or with little difference in the hours. This makes the communication significantly easier — an extremely important factor, as any software development project involves a lot of communication between all its participants. As a result, nearshore software development enables solid collaboration between the teams.

Increasing Team Skills

We move engineers who are not actively deployed to internal projects to build cutting-edge solutions in Artificial Intelligence, Machine Learning, Data Infrastructure, Blockchain, and Robotic Process Automation. This is how we further invest in improving our nearshore software development model.

nearshore software development outsourcing

Of course, everyone wants to succeed, but not everyone shares the same professional or work values. At the very least, they should share the same professional and work values as your business. Ideally, business trips shouldn’t be required if you’ve outsourced a project. However, several things can happen during the life cycle of a project and as a business owner, it’s important to factor in those risks and give yourself enough leverage to allow for business trips. This means that teams collaborating across the border are able to respond to queries and concerns in real time. From the moment the first notification comes in, the team will acknowledge, respond, and solve the issue at hand within minutes. To combat such issues, outsourced companies working from beyond the border ensure the quickest response times by communicating on the very same day—mostly in under 30 minutes—for immediate solutions.

Nearshore software development and agile methodology provide the framework for fast and effective development processes. Yet, this framework may be disrupted by cultural differences and unexpected mix-ups. As mentioned, budget savings are the most important factor driving the rise of IT outsourcing. Yet, software development imposes lots of distinct services, including business analysis, project management, UX/UI design, and quality assurance performed by different specialists and programmers.

One of the biggest advantages that you can reap from outsourcing is scalability. This means, growing your team’s skills and managing costs according to the business needs.

Nearshoring Plus Outsourcing Model Pioneered By Itexico

Our Nearshore Developer Centers work with agile methodologies and follow international standards, which allow for flexible schedules and productive meetings, as well as efficient communication feedback cycles. For U.S.-based companies, this often means outsourcing to Latin America, which continues to rise as one of the top regions in the world to outsource development. Please note that in this sense nearshore works both ways and whenever our Western-European clients need our on-site assistance, our developers and BAs can visit them promptly and easily.

The successful use of outsourcing software developers has allowed bigger enterprises to develop quickly and become widely-known for their products. The most common types of jobs that are outsourced include software development, technical support and call center jobs. Nearshore outsourcing is the practice of getting work done or services performed by people in neighboring countries rather than an organization’s own country. Our Six Sigma program began five years ago and we have successfully completed Six Sigma projects both internally and with our clients. Six Sigma has become our preferred system for problem resolution and process improvement. Six Sigma is a customer-focused and data-driven management method for achieving excellence in business processes.

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