Nearshoring Software Development: Top 5 Benefits

The practice of hiring nearshore developers is gaining popularity among businesses aiming to streamline their software development process while still achieving high-quality results. Nearshore software development outsourcing can not only provide time and cost savings but also enable your company’s in-house teams to focus on core business tasks, improving overall productivity.

Hiring nearshore software developers is one of the most effective ways to scale up your development team without affecting its efficacy and output. You can find great talent at an economical price from nearshore nations with minimal time zone differences.

This piece­ will guide you through the benefits of nearshore outsourcing software development, important considerations to keep in mind, and methods to locate nearshore­ developers for your company.

What Does It Mean to Nearshore Software Development?

Nearshoring means outsourcing software development to nearby nations with the same or similar time zones.

The worldwide market for nearshoring software services is expected to be worth more than $425 billion by 2026. Research has found that 39% of technology leaders plan to increase their use of nearshore services to take advantage of the low labor costs, skilled talent, and geographical benefits they provide.

Instead of hiring in-house developers, many US companies choose nearshoring services because of their cost benefits and to gain access to an extended talent pool. Nearshoring development also has some key advantages over offshore outsourcing—hiring talent based in a distant country—such as cultural compatibility and time zone similarities.

However, there are also some essential considerations to keep in mind when nearshoring developers, such as protecting your intellectual property. It’s critical to examine the pros and cons of this approach to determine whether it’s the right option for your business.

5 Benefits of Nearshoring Software Development

From easier scaling to freeing up your in-house software development team to work on other tasks, there are many competitive advantages to recruiting nearshore developers. Here, we’ll delve into five benefits of choosing nearshore software development.

1. Access to a wider talent pool

By using nearshore software development services, your company can gain access to a far larger pool of talent than just the developers located in your area. This can make it significantly easier to find talent with the specialized technical skills needed for your projects.

2. Smoother communication and collaboration compared with offshore teams

Communicating and collaborating with nearshore partners tends to be easier and more effective than with teams based in offshore locations.

Since the time zones of nearby countries are similar, there is a greater overlap in business hours, meaning nearshore developers can collaborate more efficiently with your in-house staff in real time. The minimal time difference can lead to faster turnaround times, reduce communication gaps, and increase overall productivity.

Additionally, countries that are close to one another tend to be more similar culturally. This means that a developer from a nearshore country may be able to better understand your business practices, expectations, and industry standards, enabling them to collaborate more effectively with your company with fewer communication barriers and misunderstandings.

3. Cost savings

Nearshore software development brings several cost savings. Many countries close to the US have lower living costs, meaning you can keep wage costs low while still providing a generous salary to nearshore developers.

For example, the annual salary of a software engineer located in Latin America (LatAm) ranges from $36,000 to $55,000, 57% less than a US-based counterpart.

Furthermore, you can save on overhead costs by hiring nearshore talent instead of in-house developers. Travel between nearshore locations also tends to be cheaper than between distant countries.

4. Frees up in-house teams to work on other tasks

Nearshoring software development is an excellent way to reduce the workload of your internal team, allowing them to focus on other core business functions.

For instance, by outsourcing software development tasks like quality assurance, bug fixing, and maintenance to nearshore talent with specialized skills in these areas, your in-house team can focus on new projects that drive your company forward.

5. Easier to scale

If you’re looking to scale your development team, nearshoring can be the ideal solution. You’re more likely to quickly find developers with the right skills in a larger talent pool. Moreover, there’s no need to set up the office space and infrastructure you’d need for in-house workers.

Nearshoring software developers on a contract basis makes scaling up and down as needed even simpler, as less work is required for recruiting and onboarding contractors than for employees.

Things To Consider When Nearshoring Software Development

Hiring nearshore developers is beneficial in many ways. However, there are also some important considerations that you should be aware of.

The following are some of the main considerations associated with nearshoring software development.

Intellectual property protection

When outsourcing software development to a nearshore team of developers, you need to take a few measures to protect your intellectual property. This may involve some legal efforts to ensure your proprietary information is kept confidential and prevent its misuse.

Remember that implementing a code signing certificate ensures that all transmitted code remains intact, unaltered, and authentic. This security measure helps establish a foundation of trust among team members, fostering a more productive and secure collaborative environment.

Some potential communication challenges

You will not typically be able to manage and communicate with a nearshore software development team in person. Therefore, it is important to use remote technologies to maintain open lines of communication to ensure deadlines are met and the quality of work consistently meets your company’s standards.

Furthermore, although nearshore software development partners tend to share some cultural similarities, there may still be some differences in their work habits, communication styles, and business norms. These cultural barriers may create some misunderstandings and misalignments in project expectations that could affect overall teamwork.

For example, communication with a nearshore developer may be more difficult if their English proficiency is lacking. However, it is worth noting that top remote professionals based in LatAm often have excellent English language skills, making language barriers less of an issue.

Finding the right nearshore outsourcing partner

One of the most challenging tasks of nearshoring software development is searching for a nearshore software developer or company with the skill sets and expertise to handle your software development projects.

You must perform extensive research on potential nearshore outsourcing partners and verify their experience to ensure their compatibility with your organization and its needs. If you’re looking for a good place to start, see our list of the top nearshore software development companies.

Where To Find Nearshore Software Developers

To take full advantage of the competitive benefits of nearshore software development, you’ll need to know where to find the most qualified talent. The best resources for recruiting nearshore developers include social media platforms and other online communities, nearshore outsourcing companies, and freelance platforms.

We’ll explore each of these alternatives below.

Online communities and social media channels

One way to find nearshore developers is through online communities on major developer-focused platforms, such as Stack Overflow. To find skilled developers with the right core competencies, you can also search on websites and forums related to the specific technologies you use or the type of product your company develops.

Additionally, you can use social media platforms like LinkedIn to create job postings or reach out directly to developers based in nearby countries.

Nearshore outsourcing companies

Trying to handle the process of finding, vetting, recruiting, and onboarding nearshore developers on your own can be difficult and time consuming. Nearshore outsourcing firms like Near streamline recruitment by connecting you with pre-vetted developers and providing support with processes like interviewing and onboarding.

Partnering with these companies is often the most reliable way to hire nearshore developers since they already have expertise in talent acquisition and often continue to offer support even after a placement is made.

Look through our list of the best nearshore outsourcing companies for US businesses to begin your search for the right nearshoring partner for your organization.

Freelance platforms

You can find thousands of nearshore developers on freelance websites like Upwork, Toptal, and Freelancer. The developers on these platforms have a wide range of specialties and rates, making it more likely that you will find a freelancer who suits your business requirements and budget.

However, many freelance sites do not vet or guarantee the skills of the developers who sign up for their platform. Therefore, it’s essential to verify their expertise and experience by scrutinizing their portfolios and job histories, though this means you may have to spend time sorting through many candidates with widely varying capabilities.

Final Thoughts

US businesses are attaining greater success and growth by collaborating with competent nearshore development partners. Nearshoring allows you to choose from a larger pool of top software development professionals, save significant costs, and scale more easily.

That said, it’s crucial to account for intellectual property protection, ensure effective communication, and use reliable resources to find qualified talent.

If you’re looking for support in this process, Near can help you hire LatAm-based developers in under 21 days and save 30–70% on salary costs. Simply fill out our short form to get a list of pre-vetted candidates suitable for your business.